A reverse mortgage is when you tap into your home’s equity and receive monthly payments from a lender. Reverse mortgages are usually granted to retired or older people to help them make ends meet. The reverse mortgage must be repaid upon the death of the homeowner or when the home is sold. A reverse mortgage is also known as a home equity conversion mortgage or HECM. For more related stories click on the related articles listed below.
Reverse mortgages pay the home owner and have not been affected by falling home values. Getting a reverse mortgage helps you tap your home's equity, or the amount of the home you own outright. Because few people obtain reverse mortgages and reverse mortgages do not cover full home values, reverse mortgages have not been hurt by the credit crisis.
Should seniors pay heating bill and their mortgage using a credit card? Ilyce suggests they either sell their home or get a reverse mortgage to stop paying the heating bill with the credit card. The reverse mortgage would allow seniors to stop charging their home heating bill on the credit card.
In general, a reverse mortgage is something you consider if you have no other alternative and want to stay in your property. Reverse mortgages tend to be expensive, relatively inflexible, and they will eat up most of the equity in your property. Much research is needed before deciding to get a reverse mortgage.
Older Americans who own their homes outright may benefit from a reverse mortgage or HECM, where they'll receive monthly payments from the equity in their homes. Reverse mortgage or HECM lenders can advise on how much a reverse mortgage will cost in fees and the issues inheritance issues involved.
A reverse mortgage can allow you to tap the equity in your home without having to sell it or take on another loan. Reverse mortgages or HECMs are commonly used by older Americans in retirement. A reverse mortgage can supplement other retirement income from investments and Social Security.
A reverse mortgage may be a way to obtain some extra income, especially if you're elderly or retired. A reverse mortgage lets you get the equity out of your home without having to sell it or take on another loan such as a home equity loan. Learn who might be a good candidate for a reverse mortgage, or HECM.
A reverse mortgage can be a good option for an elderly parent who has equity in her home but not much cash. If the parent is over 62 and owns her home, she would be eligible. The money would be doled out in a lump sum or monthly payments that would be paid back when the house is sold. A reverse mortgage is a good way for a parent to use her home's equity to enjoy her retirement.
The idea behind a reverse mortgage is to allow seniors age 62 and older to tap into the equity they have built up in their homes to augment their income or make necessary repairs to their home. You can either get the cash in a lump sum, or as a home equity line of credit, where you can write a check as need be, or as a stream of income.