Many older homeowners choose the reverse mortgage route to help cover their finances, especially when their home is their largest asset. Here is some more information about reverse mortgages.
WHAT IS A REVERSE MORTGAGE?
A reverse mortgage is when the equity in your home is used to receive funds either in an up-front sum, a monthly payment, or via a line of credit and comes from the lender. The amount of the loan cannot exceed the value of the home.
WHO IS ELIGIBLE?
Home owners who are over the age of 62 and have a sizeable amount of equity in their home are eligible for these types of loans.
HOW ARE THEY PAID BACK?
Instead of making monthly payments, the entirety of the loan is due once the home is sold or the borrower passes away.
HOW DO I APPLY FOR A REVERSE MORTGAGE?
This type of mortgage is considered a specialty loan and may not be available through all financial institutions or lenders. Additionally, there is a large amount of scams associated with this type of loan with fraudsters targeting older people. Always make sure you are using a legitimate lender for this process.