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A reverse mortgage is a loan or line of credit you take against your house from the equity in your house that you do not have to repay, as long as you live there. You can choose to pay it off if you sell your home or you can simply live in your home until you both pass away and the home would then belong to the bank. Remember that you will still need to pay for your property taxes, insurance and repairs. If you do not, the loan could become due in full. Who qualifies for a reverse mortgage loan? Anyone who; is over 62 years of age, owns their home and has paid off at least 60% of their mortgage. Unlike a regular mortgage or line of credit, a potential borrower must meet with a reverse mortgage counselor to make sure you fully understand what you are getting. Your bank or the HUD will have a list. Reasons to get a reverse mortgage: · You can't keep up with your high medical bills. · Your company let you go before you were eligible for the pension plan. · Your children are financially sound, but you don't have enough money left after paying the bills to do anything fun or buy anything that's not a necessity. · These are your golden years and you would like to travel and travel well and often, not a few budget trips. · Your house is in desperate need of repair, but you don't want the additional monthly bill of a home equity loan or line of credit. · Social Security isn't enough to pay your bills with. · You lost a lot of money in the stock market and your savings are pretty small. · Your children could use major financial help and your savings aren't that big. · You have no children to leave your house to and your nieces and nephews are well taken care of. · You and your spouse didn't have life insurance policies and now you're in trouble financially. · You retired early or had to retire for various reasons, but you don't yet quality for Social Security or want to wait a few years to get a larger monthly payment. Whatever the reason is for wanting a reverse mortgage, be sure to read my article on advantages and disadvantages of reverse mortgages so you'll be better informed.
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