Not sure what a reverse mortgage is? A reverse mortgage allows a homeowner over the age of 62 to tap home equity for cash without the burden of making monthly repayments. A reverse mortgage:
- Is a loan against the home’s equity.
- Requires no repayment as long as you reside permanently in your home.
- Is repaid at death, the sale of the home, or if the owner permanently moves out.
- Can be made as a lump sum, used as a credit line as needed, or can be paid out as monthly supplemental income.
- Can never exceed the value of the home. If at the time of repayment, the home is worth less than the amount borrowed, the lender can never demand more than the market value of the home.
We work with reverse mortgage counselors and lenders to provide clients with financial alternatives to selling their home. These professionals can help senior homeowners determine their eligibility for reverse mortgage programs and assess the amount available based on the home value, age of the homeowner and where the owner resides.
Seniors should consider if borrowing against their home with a reverse mortgage is a subject they want to discuss with adult children. A reverse mortgage will result in less home equity left to heirs.
For more senior reverse mortgage information, give us a call at 775-432-6300.