You’ve finally reached the golden age of 62 and now qualify for a reverse mortgage, so how does this impact you? Well, quite frankly all this means is you have more options, and who doesn’t like having options!
With a reverse mortgage, or a home equity conversion mortgage, eligible homeowners can pull equity out of their homes. Basically, you receive a loan based on your age and the amount of equity you have built up. After your existing mortgage is paid, the remainder of the loan amount is yours to spend; however, you are still responsible for tax and insurance payments.
As the borrower, you are not required to pay back the loan for as long as you live in the home and the loan is non-recourse, meaning neither you nor your heirs are required to pay back more than the sale price of the home.
For more information and details about what a reverse mortgages is, visit https://www.reversemortgage.org/About
Still wondering if a reverse mortgage is right for you? Check out this information from the CFPB to help you make your decision.