Monday, July 11, 2016
Today i write about reverse mortgage
Reverse mortage is a loan made by a lender to a homeowner using the home as security or collateral.
With a traditional mortgage, the homeowner uses their income to pay down the debt over time. However, with a reverse mortgage the loan balance grows over time because the homeowner is not making monthly mortgage payments.
In the website http://reverse.org , you can calculator with basic information (age of owner, home value and mortage debt)
The pros reverse mortage is:
Provides flexible disbursement options (i.e. monthly or line of credit)
Homeowner stays in the home without making monthly mortgage payments*
Eliminate any existing mortgage
Heirs are not personally liable if payoff balance exceeds home value
Heirs inherit remaining home equity after paying off the reverse mortgage loan
Proceeds are tax-free**
Interest rates may be lower than other options
Please check the website http://reverse.org