If you are 62 or older and want money to pay off your mortgage, supplement your income, or pay for healthcare expenses you may consider a reverse mortgage. It allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.
With a reverse mortgage, the bank makes payments to the borrower based on a percentage of accumulated home equity. When you have a regular mortgage, you pay the lender every month, in order to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you. It is a kind of advance payment on your home equity.
When the borrower passes away, sells the home or permanently moves out.
Seniors age 62 and older who own homes outright or have small mortgages.
For any reason. Retirees typically use cash to supplement income, pay for health care expenses, pay off debt or finance home improvement jobs.
You can receive a portion of your home's equity in cash.
You will never make a monthly mortgage payment again, as long as you reside in your home (you will still be responsible for the property taxes,
home owner's insurance, any Home Owner Association fees and maintenance of the house).
You can have access to your home's equity with a credit line or in a lump sum.
You will maintain home ownership and title.
A reverse mortgage for purchase may help some seniors finance a new place to live.
If you are having trouble using the stairs in your current two-story home an option is to sell it and used a "reverse mortgage for purchase"
to move into a one-story house.
