If you’re a senior citizen who owns a home or if you’re in charge of a parent or grandparent’s assets, there’s a chance that you’ve heard of reverse mortgages. It’s understandable that amongst the mass of all kinds of financial infomercials or e-mails flooding your consciousness, it could be hard to keep track of what exactly everything is. A reverse mortgage is a loan available to eligible seniors with equity in their homes that, unlike a home equity loan, does not require monthly payments. Reverse mortgages may seem confusing, but Ross Mortgage Company has all the information you need.
A reverse mortgage is a loan available to people 62+ years of age. It enables the borrower to convert part of the equity in their home into cash without having to sell the home, give up title or take on new monthly mortgage payments. It can be a very smart financial decision.
The loan is called a reverse mortgage because the traditional mortgage payback stream is reversed. Instead of making monthly payments to a lender (as with a traditional mortgage), the lender makes payments to the borrower.
Reverse mortgages were originally created to help people in or near retirement and with limited income use the money they have put into their home to pay off debts (including traditional mortgages), cover basic monthly living expenses or pay for health care, cover home repairs or modifications, help prevent foreclosure, cover property taxes or even secure cash reserve for emergencies. There is no restriction on how a borrower may use their reverse mortgage proceeds.
The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as you live in the home, you are not required to make any monthly payments towards the loan balance, but you must remain current on your tax and insurance payments.
If this sounds like it may be a good move for yourself or a family member, why not see what Ross Mortgage can do for you?