What Is A Reverse Mortgage?
You've seen the commercials and you've heard people talk about it, but do you really know what a reverse mortgage is? This might come to a surprise to you, but it's nothing more than a mortgage loan secured by your home. Just like any other mortgage you might have had in the past. With some differences. It's only available to homeowners over the age of 62 and it's only available on principal (aka primary) residences. It allows a homeowner to use part of their home equity to obtain cash proceeds that can be used in many ways. With me so far? It has more flexibility. Really? A reverse mortgage gives you the option to decide whether you would like to make a monthly payment or not. Most borrowers elect not to make a payment which is what the program was designed to offer: keep more of your cash for retirement. The reverse mortgage does not have to be repaid until one of three things occur: the last remaining borrower or el...