A reverse mortgage allows seniors to access the equity they've built up in their home. If one of the owners of your home is 62 or older, you may qualify for a reverse mortgage to eliminate your current mortgage payments and receive extra cash. You have full control over how to use reverse mortgage proceeds. The mortgage is a non-recourse loan, meaning the borrower will never owe more than the home is worth. With your passing, your heirs can choose to sell the property to pay off the loan, or refinance the entire amount of the existing mortgage balance, regardless of the home's appraised value.
Seniors only need to repay reverse mortgages when the last surviving borrower sells the home or permanently leaves the residence. Until one of these conditions is met you live in your home and make no payments. Your annual obligations include property maintenance, property taxes, and insurance payments.
Retirement should bring financial peace of mind, but all too often retirees find themselves running low on essential funds due to medical bills, credit card debt, or other expenses. Retirees often put themselves under undue financial stress to meet these obligations without capitalizing on one of their largest investments: the value of their home.
A reverse mortgage frees up your equity so you can use it now, when you need it. Some people simply want to live without the specter of next month's mortgage payment threatening their financial well-being. Others need cash to meet the expenses of medical bills or independent living assistance. Still, others need a little extra to pay for home renovations, a new car, or to take that vacation they've always dreamed of - the choice is yours.