I recently went to a “reverse” mortage seminar where about 25 senior citizens gathered to hear how they could get money without having to repay a dime. Interesting, isn’t it. Here are the basics of a “reverse” mortage.
A “reverse”mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan monthly. The cash you get from a reverse mortgage can be paid to you in a few different ways:
- a single lump sum of cash
- as a regular monthly cash advance sent to you
- as a “creditline” account that lets you decide when and how much of your available cash is paid at any given time as a combination of these payment methods.
No matter how this loan is paid out to you, you generally do not have to pay anything back until you pass away, sell your home, or move out of your home permantly. Eligibility for most reverse mortgages require you to be at least 62 yeras old and own your home
