What is a reverse mortgage?
A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income. There are no income or credit qualifications, and there are no monthly payments to make. You still keep title of the home and the loan only becomes due when the last borrower(s) permanently leaves the home. These loans are backed by the U.S Government or major financial institutions.
A reverse mortgage enables homeowners to convert the equity in their home into cash, while continuing to live in their home. The homeowners can be paid their equity in one of three different ways (or any combination): A). In a lump sum B). As monthly income for life or a fixed number of years C). As a line of credit.
A Reverse Mortgage is loan against your home that requires no repayment for as long as you live there. It enables homeowners age 62 and over to tap into the equity in their home, converting value into income, and never have to make mortgage payments, move, or sell the home. It truly is a “mortgage in reverse”. A Reverse Mortgage loan puts to use the value in your home so you can receive cash, a tax-free monthly income, and/or a line of credit. There are no income or credit qualifications and never any monthly payments to make. A reverse mortgage is a way to stay in your home and receive cash to use for anything you see fit – payoff your current mortgage, payoff other debt, remodeling or repair, health care, or a trip to Tahiti. Best of all, you retain title and remain living in your own home.
A reverse mortgage loan is a unique type of home financing that enables senior homeowners who are at least 62 years of age to access cash monthly or convert a portion of the property’s value into instant money. But unlike a traditional equity line of credit or cash out refinance loans, there are no monthly payments ever due to a mortgage company. Think of a reverse mortgage like and annuity loan that pay the senior a premium each month. HUD offers a FHA reverse loan that ensures these benefits and it is federally-insured as well.
Allows a homeowner convert a portion of the value in his or her home into cash. The value built up over years can be paid back to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s Reverse Mortgage provides these benefits, and it is federally-insured as well.
