Augusta Reverse Mortgage
According to Wikipedia Augusta (also known as Augusta-Richmond County) is a consolidated city in the U.S. state of Georgia. The City of Augusta and Richmond County governments merged operations in 1996; as of September 2008, the Augusta-Richmond county population was 192,851, not counting the unconsolidated cities of Hephzibah and Blythe.
Augusta is the principal city of the Augusta-Richmond County Metropolitan Statistical Area, which as of July 2007 had an estimated population of 528,519. Augusta is thus the second largest city in Georgia and the second-largest metro area in the state after Atlanta, as well as the 113th largest city in the U.S. Internationally, Augusta is best known for hosting The Masters golf tournament each spring, and for being the hometown of funk singer James Brown.
Augusta Reverse Mortgage Limits
The economy has affected a lot of people in the past year, including those who are on social security. The results have caused many in the Augusta, GA area to wonder how they are going to get the cash flow they need during their retirement years. The good news is that a reverse mortgage can make the financial difference you need.
When people realize that a reverse mortgage can give them the money they need, they often do not understand that it is not difficult to qualify for one. The truth is that it could hardly be any simpler than what it is.
All you have to do is be at least 62 years old. If there is to be more than one name on the mortgage, then the youngest must be at least 62 as well. Another requirement is that you must have more equity in your home than the money that is still owed to the bank. Your credit rating or current level of income will not even be considered because you will not be making any payments.
When a reverse home mortgage is issued, it will first pay off your current mortgage. This enables the rest of the money to be used for your financial needs, and for the costs and fees of the reverse mortgage. How you use the money from your loan is entirely up to you.
You are free to use some of the money to fix up your home, go on a vacation, pay off your credit cards, help your grandchild get an education – whatever you want. You will be allowed to choose how you want the money delivered to you. You can choose between a lump sum amount, monthly payments, or a line of credit. Some people choose a combination of all three.
An HUD reverse mortgage charges an up front fee of 2% for mortgage insurance, and an additional 0.5% per month to be able to guarantee you that your money will be there when you need it. Only the FHA reverse mortgages provide this guarantee – even if your lender should disappear due to the economy. You are covered.
Another guarantee is given in your agreement that says that you cannot owe more than what your home is worth. You will have the right to live in your home for as long as you need it, but you will be required to maintain it, pay your taxes and utilities, and keep homeowners insurance on it.
Another bit of news for senior Augusta homeowners is that the lending limits for reverse mortgage loans are higher than normal. They currently will give you up to $625,500 if your home is worth that much. This amount, however, is only guaranteed until the end of 2009.
In order to make sure that you understand what you are involved in, the government will want you to get counseling for the reverse mortgage prior to actually getting one. This ensures that you do know what you are doing and what you are entitled to.
To get started learning more about a reverse mortgage in Augusta, GA, you can quickly see how much you may be able to receive by using our reverse mortgage calculator. You will also be able to choose between a fixed rate mortgage and an adjustable rate.
Augusta Links:
Augusta City, Augusta Seniors
