Reverse Mortgages

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A reverse mortgage is a non-recourse loan secured- the borrower can remain in their home, allowing them
by a house. Unlike a conventional mortgage thatto remain independent;
decreases over time, a reverse mortgage increases- the proceeds from the reverse mortgage are
over time.generally tax free;
Reverse mortgages are designed for older- reverse mortgages are flexible; payments can be
homeowners who are "house rich, but cash poor."received as a lump sum, or as monthly payments for
With a reverse mortgage the homeowner borrowslife;
money, but does not have to repay it as long as they- no repayments are necessary as long as the
live in their house.homeowner lives in the home;
Each month interest is added to the principal amount- in most cases reverse mortgage proceeds will not
of the loan, and when the homeowner moves, theyaffect regular Medicare or Social Security benefits;
either repay the loan, or the house is sold and the- the borrower's credit rating doesn't matter; only the
proceeds go to the reverse mortgage lender.value of the home is important;
To qualify for a reverse mortgage, the borrower (and- no payments are required as long as the
their spouse if married) must be 62 years of age orhomeowner lives in the house;
older, and they must own their primary residence,- it's a good way to unlock the equity in a house, to
which will serve as security for the loan.allow the homeowner to remain in their house;
The amount that the borrower can borrow is based- the proceeds from the mortgage can be used for
on the value of the home, interest rates, and the ageany purpose;
of the homeowner. Older homeowners can borrow- reverse mortgages are non-recourse, so even if
more than younger homeowners, since it is assumedhouse prices drop in the future, or interest rates
that the reverse mortgage will be repaid sooner.increase, the homeowner cannot be forced from their
Here are ten reasons you should consider a reversehome.