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Here’s a simple summary table explaining a Reverse Mortgage:
🏠 Summary Table – Reverse Mortgage
| Aspect | Details |
|---|---|
| What is it? | A loan that allows homeowners (usually 60+ or 62+) to convert part of their home’s equity into cash without selling the house. |
| Who’s Eligible? | Typically seniors who own their home outright or have a low mortgage balance and live in it as their primary residence. |
| How It Works | The lender pays you (monthly, lump sum, or line of credit), and repayment is deferred until you move out, sell the home, or pass away. |
| Common Use | Supplementing retirement income, covering healthcare expenses, or paying off existing mortgages. |
| Repayment | Loan + interest is repaid when the home is sold or the homeowner dies. Heirs can choose to repay the loan and keep the home. |
| Risks | - Reduces home equity- Fees & interest can add up- Can affect inheritance |
| Benefits | - No monthly payments- Stay in your home- Access to tax-free cash |
| Important Note | You’re still responsible for property taxes, insurance, and maintenance. Failure to pay can lead to foreclosure. |
Would you like a visual explainer or a comparison chart of reverse vs. traditional mortgages?
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