A Reverse Mortgage allows you to take the equity in your home and turn in into tax-free income. You are not required to make any monthly mortgage payments as long as you live in the home.
Introduced in the late 1980s, reverse mortgages can help homeowners who are “house-rich but cash-poor.” It allows seniors age 62 and older to remain in their homes and still meet their financial obligations. The proceeds of the loan are tax-free; there are no income requirements and the money can be used for any purpose.
The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular ‘forward’ mortgage, the lender makes payments to you.
While a reverse mortgage loan is outstanding, you continue to own the home and hold title to it. You will NEVER give up the ownership in your home! The money from a reverse mortgage can provide you with financial security
The money from a reverse mortgage can be used for ANY reason:
- pay off an existing ‘regular’ mortgage
- daily living expenses
- home repairs and home modifications
- medical bills and prescription drugs
- pay-off debts
- long-term health care
- prevention of foreclosure
- and many other needs