What is a Reverse Mortgage?
Reverse mortgages are offered to seniors 62 or older who either have tremendous equity in their homes or own their free and clear and who wish to use extra money based on their equity. The lender gives a value to the property and lends based on that value. Money can be distributed to the owner every month or as a lump sum for the owner to live on to supplement social security and other income sources.
When is a Reverse Mortgage due?
Reverse mortgages are due upon the sale of the property or upon death of the owner.
What are some of the main risks of a Reverse Mortgage?
While Reverse Mortgages might be a good or necessary avenue for some seniors, be sure to get sound legal advice on what the responsibilities are for the owner and who the property reverts to after death.