There are various types of mortgages available to homeowners. One of them is a reverse mortgage. This is a type of loan that is available to homeowners who are 62 years or older, allowing them to convert part of the equity in their home into cash. Created as a way to help retirees pay for their basic monthly living expenses and health care via the accumulated wealth in their properties. The idea is to help reduce the financial strain many feel with their limited income, and with no restrictions on how the funds can be used, this option is a great solution for many.
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The way a reverse mortgage works is, instead of making monthly payments to a lender, like with a traditional mortgage, the payments would go directly to the borrower. Furthermore, the debtor does not have to pay back the loan until the home is sold or otherwise left empty, meaning for as long as the purchaser is living in the house, they do not have to make monthly payments towards the loan balance. However, they must remain current on property taxes, homeowners insurance, and any other applicable fees associated with the property.
What do you think about reverse mortgages? Is this something you would apply for? Click Here to See if you Qualify.