There is a lot of information out there about reverse mortgages and whether or not they are beneficial for your specific situation. Understanding the nuances associated with title insurance and applying for a reverse mortgage can be daunting for anyone. Here, we break it all down for you in a simple, easy-to-follow guide for understanding what exactly a reverse mortgage is and whether title insurance is really needed or not.
What Exactly Is A Reverse Mortgage And Do I Need One?
This is an extremely common question among homeowners. In fact, reverse mortgages are rising in popularity these days. As a result, knowing what they really are is extremely important before you decide that a reverse mortgage is right for you. Basically, a reverse mortgage is really no different than a traditional mortgage. Considering the concept remains the same, the slight differences are tiny. Instead of thinking about a reverse mortgage as a wholly separate thing, think about it just like you would a traditional mortgage but with some differences. With a reverse mortgage, the homeowner is getting a loan. However, they are only getting a loan on the equity available on the home. In the instance that there is no equity in the home, the borrower would then receive cash payouts. As a result, the borrower can then pay off the loan if they so choose, as opposed to a traditional mortgage where repayment is mandated. To be eligible for a reverse mortgage, the homeowner must meet the minimum requirements of being at least sixty-two years of age and must live on the exact property that they are requesting a reverse mortgage on.
Title Insurance And Reverse Mortgage
Just like in a traditional mortgage scenario, the title insurance policy stays the same. In fact, the owner’s policy continues to be valid until the homeowner no longer owns the property in question. However, it is important to note that the reverse mortgage lender will always request a new title mortgage policy to protect the reverse mortgage lender.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.