Myrtle Beach Reverse MorgageHomeowners who are at least 62 years old have the option to get a reverse mortgage. This option gives them access to their home equity while still living in their home. The additional income can be utilized by the borrower based on his or her needs. These may include home remodels, medical bills, or just to pay off monthly bills. However, before you get this kind of loan, you need to prepare yourself. You need to learn everything there is about reverse mortgage. Provided below are some useful tips when finding a lender.

Closing Costs

The first thing that you have to know is that there are closing costs. Similar to other types of loans, a reverse mortgage comes with closing costs. The Consumer Financial Protection Bureau says that there are mortgage insurance premiums, origination fees, and other related closing costs that you need to be aware of. You need to discuss all these fees with your lender so that you will not be caught off guard in the future.

Loan Balance

Another thing that you have to know is that the loan balance will eventually increase. Because reverse mortgage loans don’t need the borrower to make any monthly payments, you cannot expect the principal balance to decrease as time passes by. However, interest is going to be added to the monthly outstanding balance, and that means there will be a noticeable increase in your balance over time.

Interest Rates

Interest rates also differ from one lender to another. Bank Rate said that a reverse mortgage Myrtle Beach might have differing interest rates. Some are issued with a variable or fixed interest rate. These things usually depend on the lender that you choose. You also cannot deduct the interest fees. Unlike any other traditional loans, the IRS clarified that the borrower cannot deduct the interest fees from a reverse mortgage loan from his or her income taxes since it is not an income source but a loan.


If you obtain a reverse mortgage, you will only be asked to pay back the value of the home. Most of the reverse mortgage loans have a non-recourse clause. Investopedia explains this means the borrower will only be liable not for the balance due but only the home value. Because of this, the borrower’s estate is protected from owing cash once the home is sold, in case the value has dropped.

Choosing Lenders

By far the best tip that can be offered to you if you are planning to get a reverse mortgage is to choose a lender that specializes in issuing this kind of loans. Spend some time to do your research about each potential lending company. Do not forget to talk about all these to your financial adviser to find out if they can provide you with a referral.

As per the National Consumer Law Center, a reverse mortgage could be a good financial vehicle for Americans who are on their senior years and trying to make use of their home equity without having to make immediate monthly payments.

Call South Carolina Reverse Mortgage Services of you need to know more about reverse mortgage loans.

South Carolina Reverse Mortgage Services
Myrtle Beach, SC 29577

South Carolina Reverse Mortgage Services
Charleston Office
Charleston, SC 29401

Serving all of South Carolina.