Reverse Mortgages are GREAT… just have bad press!
Reverse Mortgages are GREAT … just have bad press!
Reverse Mortgages are GREAT… just have bad press!
While not for everyone, a Reverse Mortgage is a good thing for folks with equity but not cash. The mortgages allow homeowners aged 62 years and over to use the equity they have in their home.
Who is a Reverse Mortgage is good for:
A homeowner that;
- has at least 50% equity in their home
- is as least 62 years of age and LIVE in the house
What the money can be used for:
- It does not matter what you use the money for as it’s your money. When you leave the home (sell, die or move out) the home gets sold and the amount you borrowed gets paid off with the home sale proceeds. In the event you owe more than than what the home is worth….you do NOT have to pay it off. (that is correct, I said it right!!)
- Anything….. that’s right, it could be home health care, repairs or a vacation around the world
You can take the money in several different ways…
- Lump Sump (1 payment)
- Monthly Payments
- Line of Credit (that you can draw on when you need it…line grows over time too!)
- OR…. A Combination of payment options.
What more information on them….. Call or e-mail me. While folks have heard some bad press about Reverse Mortgages, they are a useful, helpful tool and should be explored with a professional. It could make the difference of an older adult staying in their home or having to sell it.
Important things to know…
- No repayment is necessary
- Homeowner and heirs will NEVER be responsible for any amount exceeding the balance of the loan. (Sounds weird right? But it’s true)
- Homeowner ALWAYS retains title to the property
