The New Rules on Reverse Mortgages
Seniors can borrow more at a lower cost
Tapping home equity to finance your golden years is a strategy that’s growing in popularity. The housing law signed by President Bush this summer raises the amount seniors can borrow using federally backed reverse mortgages and lowers the cost of getting the cash. Here’s what you need to know about the new rules for reverse mortgages:
• Instant cash has strings. A reverse mortgage is a loan against your home’s value that doesn’t have to be paid back as long as you live in that house. Generally, you have to be 62 or older to be eligible for one. After paying a variety of fees, you can get a lump sum, monthly payments, a credit line, or a combination of these options. When the home is sold, the loan must be repaid with the proceeds. Any remaining equity goes to the borrower or heir.
Post from: Reverse Mortgage Loan Blog
