Pros and Cons of a Reverse Mortgage
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. You need to own the home outright or have paid down a considerable amount of the mortgage. The home needs to be your principal residence and you can’t be delinquent on any federal debt. You will need to be subject to a credit check and other eligibility requirements. You must stay current on your property taxes, insurance and HOA fees. How Reverse Mortgages Work In a reverse mortgage the lender makes payments to you . Instead of you paying down the mortgage to $0 it works in reverse