Money
One of the most controversial money mortgages available is the reverse mortgage. There has always been a double-sided debate about these loans among the senior homeowner population.
This Senior Affair article will uncover the truth about reverse mortgages so you can make the best money decisions.
Understanding Reverse Mortgages
On the one hand, the senior homeowner has earned the equity in their property. But, on the other hand, many seniors own their homes free and clear and deserve to relax and live comfortably without financial stress. On the other hand, many seniors struggle to make ends meet with fixed money incomes, often juggling the cost of food, medications, home expenses, and everything else. On the other hand, a reverse mortgage is an excellent way for seniors to supplement their retirement income and alleviate the stress.
In opposition to these money loans are the senior’s heirs, who stand to inherit the home and other assets when they pass. The children know that the lender will get the property unless they can refinance the family home at the payoff event. The heirs try to make a reverse mortgage a family decision when it’s the homeowner’s choice.
A reverse money mortgage is a way to liquidate your home equity and receive cash payments in return. These loans are only available to people 62 years of age or older. Unlike a standard mortgage, these loans work in reverse.
Think of a regular or forward mortgage where you borrow a sum of money to buy your property. Now reverse it so that the bank makes money payments to you, up to the property’s value, with the property acting as collateral.
