uthai
09-05-2007, 06:46 AM
What is a Reverse Mortgage?
A reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership. Reverse mortgages work much like traditional mortgages, only in reverse. Rather than making a payment to the lender each month, the lender pays the borrower.
Who is eligible?
All persons on the title must be at least 62 years old and must occupy the home as their principal residence. You must own your home "free and clear" or have a very small mortgage balance. Income is not required to qualify.
How much cash can You get?
The amount of cash available from a reverse mortgage depends on your age, your home's value and location, and current interest rates. You can select to receive your money through monthly payments, a line of credit, a lump sum, or some combination.
How do people use the money?
You can use the money for any purpose. Most people use the proceeds from reverse mortgages for home improvements, for in-home health care, to pay taxes and insurance, or to generally improve their standard of living over Social Security.
A reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership. Reverse mortgages work much like traditional mortgages, only in reverse. Rather than making a payment to the lender each month, the lender pays the borrower.
Who is eligible?
All persons on the title must be at least 62 years old and must occupy the home as their principal residence. You must own your home "free and clear" or have a very small mortgage balance. Income is not required to qualify.
How much cash can You get?
The amount of cash available from a reverse mortgage depends on your age, your home's value and location, and current interest rates. You can select to receive your money through monthly payments, a line of credit, a lump sum, or some combination.
How do people use the money?
You can use the money for any purpose. Most people use the proceeds from reverse mortgages for home improvements, for in-home health care, to pay taxes and insurance, or to generally improve their standard of living over Social Security.