There have been many advertisements on television, in the news, and online advertisements about reverse mortgages. Basically speaking a reverse mortgage is just a loan that lets homeowners take part of the equity in their house and turn it into tax-free income and the house does not have to be sold. This type of mortgage is available for persons age sixty-two and older. In addition to not having to sell their house, they do not have to have a new monthly payment, and they do not have to give up the title to their house.
Many senior citizens are taking advantage of a reverse mortgage to add to their retirement income or be able to have some cash to save for emergencies. Using a reverse mortgage is a great tool to help with your financial planning and many people are using it now. The only stipulation is that you must be sixty-two years of age and if both of your names are on the mortgage, then both parties must be sixty-two years of age or older.
If you still own on your house you may still be eligible for the reserve mortgage, but the only drawback is that you have to use the proceeds to pay the mortgage off first, and if there is any left over, it is yours to do with as you want. When you are approved for a reverse mortgage you can get a line of credit, monthly payments, a lump sum, or you can combine the line of credit and monthly payment.
