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"A "reverse" mortgage is a loan against your home that you do not have to pay
back for as long as you live there. With a reverse mortgage, you can turn the
value of your home into cash without having to move or to repay the loan each
month. 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.
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. To be
eligible for most reverse mortgages, you must own your home and be 62 years of
age or older.
To qualify for most loans, the lender checks your income to see how much you
can afford to pay back each month. But with a reverse mortgage, you don't have
to make monthly repayments. So you don't need a minimum amount of income to
qualify for a reverse mortgage. You could have no income and still be able to get
a reverse mortgage.
With most home loans, you could lose your home if you don't make your monthly
payments. But with a reverse mortgage, there aren't any monthly repayments to
make. So you can't lose your home by not making them. Most reverse mortgages
require no repayment for as long as you — or any co-owner(s) — live in the
home. So they differ from other home loans in these important ways:
* you don't need an income to qualify for a reverse mortgage; and
* you don't have to make monthly repayments on a reverse mortgage."
-AARP.org
back for as long as you live there. With a reverse mortgage, you can turn the
value of your home into cash without having to move or to repay the loan each
month. 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.
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. To be
eligible for most reverse mortgages, you must own your home and be 62 years of
age or older.
To qualify for most loans, the lender checks your income to see how much you
can afford to pay back each month. But with a reverse mortgage, you don't have
to make monthly repayments. So you don't need a minimum amount of income to
qualify for a reverse mortgage. You could have no income and still be able to get
a reverse mortgage.
With most home loans, you could lose your home if you don't make your monthly
payments. But with a reverse mortgage, there aren't any monthly repayments to
make. So you can't lose your home by not making them. Most reverse mortgages
require no repayment for as long as you — or any co-owner(s) — live in the
home. So they differ from other home loans in these important ways:
* you don't need an income to qualify for a reverse mortgage; and
* you don't have to make monthly repayments on a reverse mortgage."
-AARP.org
| REVERSE MORTGAGES |