For those that are 62 years old or older and own a home that has equity in it – a Reverse Mortgage can allow you to access that equity.
Why is a reverse mortgage attractive to seniors?
For those living on a fixed income and want to stay in their home, a reverse mortgage is an excellent way to make life affordable.
What exactly can the money be used for?
The money can be used to cover medical expenses, home repairs, anything you want, there aren’t any limitations to how you can use the money.
What the reverse mortgage does is allow you to access the money without having to make monthly mortgage payments. It is still a loan – so the loan would come due if you should the borrower die or the home is sold.
Yes, there are some stipulations. In addition to the age of the homeowner and the equity in the home there are some additional things to know before applying for a reverse mortgage loan.
FAQS about Reverse Mortgages
- Are monthly mortgage payments required? No.
- How is the loan paid back? The loan is due when you move out permanently, sell the house or pass away.
- What about drastic changes in the economy, what if the value of the home changes? You will never owe more than what the home is worth.