A loan for home owners who have already paid off their mortgage but want to tap into their home’s equity
Reverse mortgages come in handy for older home owners who might have a financial hardship or who just want some extra cash without having to uproot and sell their homes.
You can either receive a lump-sum loan, a line of credit or a monthly check based on the amount of equity in your home.
This money is also tax-free, since it is a loan. When you sell your home, you use your home’s equity to pay off the loan and interest.
Keep in mind that you need to pay closing costs, such as a loan origination and processing fees.
Typically, to qualify for a reverse mortgage, you need to be over 60.
Reverse mortgages come in handy for older home owners who might have a financial hardship or who just want some extra cash without having to uproot and sell their homes.
You can either receive a lump-sum loan, a line of credit or a monthly check based on the amount of equity in your home.
This money is also tax-free, since it is a loan. When you sell your home, you use your home’s equity to pay off the loan and interest.
Keep in mind that you need to pay closing costs, such as a loan origination and processing fees.
Typically, to qualify for a reverse mortgage, you need to be over 60.
