What is Reverse Mortgage?

What is a Reverse Mortgage?

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Convert into cash:

A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash.



Help retirees:

The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care.



No restriction :

However, there is no restriction how reverse mortgage proceeds can be used.



Payments:

The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.



Pay back loan:

The borrower is not required to pay back the loan until the home is sold or otherwise vacated. 



Loan monthly payment:

As long as the borrower lives in the home he or she is not required to make any monthly payments towards the loan balance.



Borrower must remain:

The borrower must remain current on property taxes, homeowners insurance and homeowners association dues (if applicable).



Thank you for reading:

For More information about Mortgage, Reverse Mortgage and other lender’s issues please visit;

  www.beingarealtor.com



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