Arrowhead Title, Inc.

Home equity is a valuable asset for multiple reasons. As one example, homeowners are able to turn their equity into cash via second mortgages. Also called reverse mortgages or home equity loans, these loans essentially enable you to borrow money against your house, so you can take advantage of your equity without having to sell your home. Last week, our blog featured answers to some frequently asked questions about reverse mortgages . This week, we're here to finish the conversation with answers to a few more common questions. Reverse Mortgage FAQ (Part 2) 8. Am I Responsible For Paying My Homeowners Insurance & Property Taxes Taking out a second mortgage does not change any of your other responsibilities associated with homeownership; you will still be required to keep your insurance and property tax current at all times. In some situations, lenders can impound your taxes and insurance and pay them for you when they become due. 9. Does My House Have To ...

You spend years of your life paying off your mortgage loan and building equity in your home - but what can you do with all that equity? Equity can be used for a number of different things, such as going towards the down payment on your next home, funding your retirement, or taking out a reverse mortgage. A reverse mortgage (also called a "second mortgage" or a "home equity loan") is a loan you take out that allows you turn your home equity into cash you can use for home improvements, buying land around your home, or any number of other possibilities.  Reverse mortgages tend to be varied and complex. You should talk to a mortgage lender to get all the information you need before officially deciding whether or not to take out a second mortgage, but the team at Arrowhead Title, Inc. is here to help you get the ball rolling. Reverse Mortgage FAQ (Part 1) 1. How Do I Qualify For A Reverse Mortgage? In order to be eligible for a reverse mortgage, you have to me...

A reverse mortgage is a specific type of home loan that turns equity into cash (without having to sell your home). Also known as second mortgages, these loans allow you to borrow against the part of your home that you officially own (in other words, the principle that you have already paid on your home loan). Reverse mortgages can be incredibly helpful for people trying to fund a child's college education or a big remodeling project, but it is important to fully educate yourself on every process first. Arrowhead Title, Inc. is here to help you test your knowledge of second mortgages with this true-or-false quiz. 1. I must have good credit to qualify for a reverse mortgage. FALSE.  The lender will run a credit report for tax and federal liens. All recorded liens must be paid off and property taxes must be paid and be current at the time of closing so the lender can take first position. 2. If I don't want to pay my taxes and insurance, the lender can set aside a portion o...