With home values rising nationwide and more baby boomers entering retirement years, a reverse mortgage can be a good option for senior homeowners to supplement fixed incomes. Our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Indianapolis to help you decide if a reverse mortgage is an option for you.
How to choose a reverse mortgage lender in Indianapolis
In Indianapolis, where about 11 percent of the population is 65 or older and home values are rising, senior homeowners living in neighborhoods like Carmel, Meridian Hills and Warren Park may find that a reverse mortgage makes sense. Reverse mortgages allow senior homeowners to tap into the equity in their homes and receive payments directly from lenders. These funds can generally be used for a number of different purposes, including paying monthly bills, buying a second home or financially assisting other family members.
The most common type of reverse mortgage is known as a Home Equity Conversion Mortgage (HECM). In order to qualify for an HECM in Indianapolis, you must:
Be 62 or older
Own or be close to owning the property outright
Occupy the property as a principal residence
Not be late on any federal debt
Be able to pay property taxes, insurance, fees, etc.
Participate in a government-approved HECM counseling session
With an HECM in Indianapolis, the borrower has the option to receive funds in a lump sum, in monthly payments, as a line of credit or in a combination of monthly payments and a line of credit. Another common type of reverse mortgage, known as a proprietary reverse mortgage, is privately funded and may be more suitable for Indianapolis homeowners with higher-valued homes.
Keep in mind that a reverse mortgage in Indianapolis is a loan that eventually will have to be repaid. Usually, reverse mortgages are repaid once the borrower dies or the home is sold.
When considering a reverse mortgage company in Indianapolis, compare fees and costs from all lenders, taking into account origination and closing costs, interest rates and closing fees. Be certain you can use the money from the loan for the purpose you desire.
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 Indianapolis, 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.
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.