As us baby boomers move into our senior years one of the most asked questions I get lately is about REVERSE MORTGAGE (also called home equity conversion loans) This product enables elderly homeowners, that's right elderly don't you just hate that term anyway reverse mortgage allow a 62 plus homeowner to tap into their equity; you receive a lump sum, a monthly payment or a line of credit. The best part about this is you don't have to pay it back until you sell the property, move into a retirement home or well I hate to say DIE!
When you sell or no longer use it as your primary residence, you or your estate must repay the cash you received form the reverse mortgage plus interest and other finance charges to the lender.
REVERSE MORTGAGE is ideal for a homeowner who is retired and no longer working. They can supplement their income, rates can be fixed or adjustable - I recommend fixed!!!! The money is nontaxable and does not, I repeat does NOT interfere with Social Security or Medicare benefits.
Another misconception I hear a lot is will the lender be able to take my properties?
Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.
The most important issue when considering a Reverse Mortgage are;
1. GET ALL The FACTS!
2. Check out Reverse Mortgages at; http://www.hud.gov/buying/rvrsmort.cfm
3. Know the difference between US HUD Insured vs Non HUD Reverse Mortgages.
Benefits of a REVERSE MORTGAGE
1. No Monthly payments while you live in YOUR home!!
2. Stops foreclosure or Late payments
3. Easy to qualify
4. Get Cash Out OR just stop current Mortgage Payments
5. Your family can keep the property after you died. They just have to repay the loan.
6. REVERSE Mortgage is available in all 50 states.
I hope this blog has been informative for you. If you have comments or questions please let me know.