Seniors in Cincinnati looking for ways to supplement their incomes should consider the benefits of a reverse mortgage. In a reverse mortgage, homeowners can draw on their equity to receive payments from a lender as long as they live at the property. Our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Cincinnati, which help provide borrowers with financial security during retirement.
How to choose a reverse mortgage lender in Cincinnati
With its highly-regarded hospitals, affordable housing and many opportunities for seniors to stay active, Cincinnati is considered a great place for Americans to retire. Almost 12 percent of Cincinnati’s population is over the age of 65, according to the census, with many choosing to spend their retirement in peaceful areas like Mount Adams, Blue Ash or Madeira.
For many retirees on fixed incomes, a reverse mortgage in Cincinnati makes sense. With a reverse mortgage, homeowners trade the equity in their house for a lump sum or regular monthly payments from a lender. Often there are no restrictions on how these funds can be used. Some seniors use them for everyday expenses while others pay off mortgage or credit card debt, finance home improvements or assist other family members financially.
Reverse mortgages are generally not repaid until the borrower dies, as long as the home is used as a principal residence, taxes and insurance are paid and the home is kept in good condition. The most common method of repayment is by using the proceeds of the sale of the home.
There are several different kinds of reverse mortgages. The most common is a Home Equity Conversion Mortgage (HECM), which is insured by the federal government. To qualify for this type of reverse mortgage (and, broadly speaking, for others) homeowners must:
Be 62 or older
Own the home entirely or have paid off a considerable amount
Occupy the home as a primary residence
Not be delinquent on any federal debt
Be able to make on-time payment of property taxes, insurance and other dues
Participate in a consumer information session given by a government-approved HECM counselor
A reputable reverse mortgage lender in Cincinnati will guide the borrower through the entire reverse mortgage process, explaining steps along the way. Generally, it takes about 30 days from start to finish, or application to closing. Keep in mind that there are various fees associated with a reverse mortgage, including upfront costs (lender fees, closing costs, etc.) and costs over time, such as interest.
In addition to HECMs, there are other types of reverse mortgages, including private loans known as proprietary reverse mortgages. This kind of reverse mortgage may allow those with higher-valued homes to qualify for more funds.
Before taking out a reverse mortgage in Cincinnati, consider which type best fits your needs. Take into account the terms, fees and what you want to do with the funds. Be wary of a salesperson who tries to rush you through the process. Remember that with most reverse mortgages you have several days after closing to cancel without penalty.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Cincinnati, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.