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May
10
Why Take Out a Reverse Mortgage

A reverse mortgage is a loan that enables homeowners who are at least 62 years old to convert some of their home equity into cash, a line of credit, or to finance a home purchase with the freedom of no monthly mortgage payments. The borrowers continue to live in and own their home.

Unlike a traditional home equity loan or home equity line of credit, a reverse mortgage doesn�t have to be repaid until the last surviving borrower or an eligible Non-Borrowing Spouse, if applicable, no longer lives in the home, or the home is sold. If the borrower does not meet loan obligations such as taxes and insurance, and maintaining the condition of the home, then the loan will need to be repaid.

The following are some of the benefits of a Reverse Mortgage
The ability to use your home equity to help you maintain a more comfortable standard of living, in your own home.
Tax-free* loan proceeds you can use however you choose.
Great flexibility. You can choose to take your proceeds as a line of credit; monthly advances for a set period of time; a monthly stream of funds for as long as you live in your home; a lump sum; or a combination of these options.
No monthly mortgage payments. This mortgage above all others gives you the most options regarding how to pay or not pay your monthly mortgage payments. If you qualify and have an existing mortgage, home equity loan or any other type of debt, you can pay it off and reduce your monthly expenses. Can get the additional funds you need with no minimum monthly repayments required. (As the homeowner, you remain responsible for paying property taxes, homeowners insurance, and homeowner�s association dues if applicable.)
...Or, if you own your home free-and-clear, you can get the additional funds you need with no minimum monthly repayments required. (As the homeowner, you remain responsible for paying property taxes, homeowners insurance, and homeowner�s association dues if applicable.)

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