A reverse mortgage is a type of loan that is designed to help homeowners age 62 and above turn part of their home equity into cash. Unlike a traditional mortgage, instead of making monthly payments to a lender, the lender will pay you as long as you live in the home. Seniors eligible for a reverse mortgage can receive this money in a number of ways including monthly payments, a lump sum or through a line of credit.
Most reverse mortgages are a type of loan called a Home Equity Conversion Mortgage (HECM). These mortgages are backed by the US government. Reverse mortgages can be a great way for older homeowners with limited income, such as retirees, to alleviate financial stress and live more comfortably in a home of their choosing. With a reverse mortgage, you still retain 100% ownership of your home and the loan will not have to be repaid until the home is sold, vacated or the owner passes away.
If you are a senior homeowner, let Global Equity Finance show you how to turn your home equity into enough supplemental income to last a lifetime.