Reverse Mortgage
A reverse mortgage is a mortgage loan type that is available to homeowners who are 62 years or older that allows them to convert the equity in their home into one of the following or a combination of the three: - A lump sum payment - Monthly income - Line of credit
ALL WITHOUT HAVING A MONTHLY MORTGAGE PAYMENT…EVER!
A Reverse Mortgage helps people that want to tap into the equity in their homes and use the money as they want to use it. This loan is called a reverse mortgage because it is the opposite of a traditional mortgage. Instead of making monthly payments to a lender, the lender makes payments (Or a lump sum or line of credit) to you as the borrower. Interest and appreciation accrue over time; as long as you live in the home, you are not required to make any monthly payments towards the loan balance, but you must remain current on your property taxes, homeowner’s association dues and insurance.
Generally speaking, cash you access from the existing housing wealth of your home is TAX-FREE and you are free to use it as you see fit: debt consolidation, supplemental income, health emergencies, helping loved ones, or perhaps most popular, eliminating an existing mortgage payment that is bogging down a potential retirement. A Reverse Mortgage puts the power and choice into your hands as the homeowner to craft a solution that works for your situation, allowing you to take control of your retirement.