A reverse mortgage is a loan from the U.S. Government for 50% to 75% of the value of a home owned by a homeowner aged 62 and older. Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the homeowner. The funds from a reverse mortgage are tax-free. The loan doesn't have to be repaid in the homeowner's lifetime, however, when the homeowner dies, the money received plus approximately 4% interest is repaid by their estate. The loan is repaid when the homeowner ceases to occupy the home as a principal residence, due to the homeowner (the last remaining spouse, in cases of couples) passing away, selling the home, or permanently moving out.
South Dakota Home Equity Conversion Mortgage (HELM) is a type of reverse mortgage available to homeowners in South Dakota. Designed for homeowners aged 62 and older, this mortgage allows them to convert a portion of their home equity into loan proceeds. With a South Dakota HELM, borrowers can access the accumulated equity in their homes without having to sell or move out. Keywords: South Dakota, Home Equity Conversion Mortgage, HELM, reverse mortgage, homeowners, equity, loan proceeds, aged 62 and older, accumulated equity, sell, move out. There are different types of South Dakota Home Equity Conversion Mortgage — Reverse Mortgage, and they include: 1. Standard HELM: The most common type of reverse mortgage, the standard HELM enables homeowners to convert their home equity into loan proceeds that can be received in various ways, such as a lump sum, monthly payments, or a line of credit. 2. HELM for Purchase: This type of reverse mortgage allows individuals to use the loan proceeds to purchase a new home. It is particularly useful for those looking to downsize or relocate while still being eligible for the benefits of a reverse mortgage. 3. HELM for Refinance: Homeowners who already have a mortgage on their property can refinance it with a reverse mortgage, eliminating their monthly mortgage payment and potentially accessing additional funds. 4. HELM Line of Credit: This option provides homeowners with a line of credit that they can draw from whenever needed. The unused portion of the credit line may also have a growth feature, enabling it to increase over time. 5. HELM Tenure Payment: Borrowers can receive monthly payments from their reverse mortgage as long as they reside in the home. This is particularly beneficial for those seeking a reliable and steady source of income. 6. HELM Term Payment: Similar to tenure payment, this option offers borrowers fixed monthly payments for a set period of time, chosen by the homeowner. 7. HELM Modified Tenure: Combining the benefits of a line of credit and monthly payments, borrowers can receive a combination of both throughout the life of the loan. 8. HELM Modified Term: Similar to modified tenure, this option provides borrowers with a combination of a line of credit and fixed monthly payments over a specified period. By offering a range of options, South Dakota Home Equity Conversion Mortgage provides flexibility to homeowners, allowing them to choose the type of reverse mortgage that best suits their financial needs and goals.South Dakota Home Equity Conversion Mortgage (HELM) is a type of reverse mortgage available to homeowners in South Dakota. Designed for homeowners aged 62 and older, this mortgage allows them to convert a portion of their home equity into loan proceeds. With a South Dakota HELM, borrowers can access the accumulated equity in their homes without having to sell or move out. Keywords: South Dakota, Home Equity Conversion Mortgage, HELM, reverse mortgage, homeowners, equity, loan proceeds, aged 62 and older, accumulated equity, sell, move out. There are different types of South Dakota Home Equity Conversion Mortgage — Reverse Mortgage, and they include: 1. Standard HELM: The most common type of reverse mortgage, the standard HELM enables homeowners to convert their home equity into loan proceeds that can be received in various ways, such as a lump sum, monthly payments, or a line of credit. 2. HELM for Purchase: This type of reverse mortgage allows individuals to use the loan proceeds to purchase a new home. It is particularly useful for those looking to downsize or relocate while still being eligible for the benefits of a reverse mortgage. 3. HELM for Refinance: Homeowners who already have a mortgage on their property can refinance it with a reverse mortgage, eliminating their monthly mortgage payment and potentially accessing additional funds. 4. HELM Line of Credit: This option provides homeowners with a line of credit that they can draw from whenever needed. The unused portion of the credit line may also have a growth feature, enabling it to increase over time. 5. HELM Tenure Payment: Borrowers can receive monthly payments from their reverse mortgage as long as they reside in the home. This is particularly beneficial for those seeking a reliable and steady source of income. 6. HELM Term Payment: Similar to tenure payment, this option offers borrowers fixed monthly payments for a set period of time, chosen by the homeowner. 7. HELM Modified Tenure: Combining the benefits of a line of credit and monthly payments, borrowers can receive a combination of both throughout the life of the loan. 8. HELM Modified Term: Similar to modified tenure, this option provides borrowers with a combination of a line of credit and fixed monthly payments over a specified period. By offering a range of options, South Dakota Home Equity Conversion Mortgage provides flexibility to homeowners, allowing them to choose the type of reverse mortgage that best suits their financial needs and goals.
