Understanding Reverse Mortgages
Q: Can you tell me about reverse mortgages? My wife and I are both in our 70s and are interested in learning more about this option.
A: Over the years reverse mortgages have been considered loans of last resorts, only for financially desperate seniors. Not any more! The reverse mortgage industry is booming, helping retirees from all walks of life use their homes to help fund their retirements.
The Basics
A reverse mortgage is a unique loan that lets older homeowners convert part of the equity in their home into tax-free income that doesn’t have to be paid back as long as they live there. Who’s eligible? How much can be borrowed? What does it cost? And is this right for you? Here are the key points on how a reverse mortgage works and where you can find help.
• Eligibility. To be eligible you must be at least 62 years old, own your own home and currently be living there. There is no income qualification. Even if you have an existing mortgage, you’re still eligible, but you must be able to get enough from the reverse mortgage to pay it off.
Post from: Reverse Mortgage Loan Blog
