Find the Best Reverse Mortgage Lenders in Cincinnati, OH

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.