How is a reverse mortgage like a home equity loan? How is it different?
• Can I refinance a reverse mortgage, as I would be able to do with a traditional home mortgage? • If I have an existing first or second mortgage, can I get a reverse mortgage? • Can I get a reverse mortgage on a second home or resort property? • Would a home that is in a “living trust” be eligible for a reverse mortgage? • If I obtain a reverse mortgage, will I still have an estate that I can leave to my heirs? • Must the heirs sell the property to repay the reverse mortgage loan? • What is “TALC” and why should I know about it? • Why must I meet with a counselor before completing my reverse mortgage application? • How can I get started? Q. What is a reverse mortgage? A. A reverse mortgage is a loan that enables homeowners, age 62 and older, to convert a portion of their home equity into tax-free* income–without having to sell their home, give up title to it, or make monthly payments. A reverse mortgage only becomes due once your home is sold or estate is settled. * Consult your tax a
A. Both a reverse mortgage and a home equity loan use the equity you have built up in your home to provide you with readily available cash. They differ in that with a home equity loan you must make regular monthly payments of principal and interest. However, with a reverse mortgage you do not make any monthly mortgage payments for as long as you stay in the home.
Both a reverse mortgage and a home equity loan use the equity you have built up in your home to provide you with readily available cash. They differ in that with a home equity loan you must make regular monthly payments of principal and interest. However, with a reverse mortgage you do not make any required monthly mortgage payments for as long as you stay in the home.
