Can an older homeowner who is cash poor but house rich use their home to tap into the equity?
Yes, but not so much by refinancing. A reverse mortgage can be better, and is an increasingly popular, option for older Americans to convert home equity into cash. Money can then be used to cover home repairs, everyday living expenses, and medical bills. Instead of making monthly payments to a lender, the lender makes payments to the homeowner, who continues to own the home and hold title to it.
Related Questions
- If a homeowner does not live in the house that secures the mortgage they’d like to modify, is this mortgage eligible for the Making Home Affordable program?
- Can an older homeowner who is cash poor but house rich use their home to tap into the equity?
- Can the homeowner refinance or pull equity from the home?
