Ok Folks,
As we have all seen in the Mortgage Industry there have been and will continue to be a lot of changes in the near and distant futures. One of the heavily marketed yet old style loan is whats know as a Reverse Mortgage.
A Reverse Mortgage is a loan against your home that you do not have to pay back for as long as you live in your home.
The cash you get from a reverse mortgage can be paid to you in several ways:
all at once, in a single lump sum of cash;
as a regular monthly cash advance;
as a "creditline" account that lets you decide when and how much of your available cash is paid to you; or as a combination of these payment methods.
In most cases no matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home
Here are some of the benefits and qualifications of Reverse Mortgages:
1.One of the qualifications is that a person must be 62 years of age
2. You must own or reside in your own home
3.You do not need to meet any income guidelines
One of the greatest appeals of reverse mortgages is that you can be guaranteed a source of money for as long as you need it, even if you live beyond your life expectancy.
You pay for that guarantee however, through interest, higher-than-usual closing costs, servicing fees and in many cases insurance premiums that protect the lender from the possibility that the loan payments will exceed the value of your home. Those costs can be and often are added to your loan balance, but they will be subject to interest. All interest on your loan balance is tax-deductible, but you or your estate may only take that deduction when the loan is paid back.
Please post your thoughts and or experiences of Reverse Mortgages
