What is a Reverse Mortgage?
A reverse mortgage allows the property owner to borrow against the equity in their home to get cash. You can also get a line of credit from the lender. You have to be 62 years old or older to qualify. You are not required to make any monthly loan payments and the loan doesn’t have to be repaid until your heirs sell the house! In addition to being at least 62 years of age, there are a few other requirements needed to qualify for a reverse mortgage.
In a reverse mortgage the lender makes payments to you. Instead of you paying down the mortgage to $0 it works in reverse. The balance owed grows over the time and the balance isn’t due until you move out or die. When the time comes, the proceeds from the sale of the home are used to pay off the balance if there’s any equity left. If the loan is worth more than the house your heirs aren’t required to pay the difference. Heirs can also choose to pay off the reverse mortgage or refinance if they want to keep the property. Reverse Mortgage Pros
Please contact us at 774-806-5034 for more information on reverse mortgages!
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February 2021
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