Seniors can take advantage of home equity ...
As seniors face rising costs in their retirement years, the equity they have built up through years of home ownership is a source of potential income.
Reverse mortgages allow seniors to take advantage of the equity in their personal residence in several ways.
- You decide how much equity you want to take out of the home
- You can take only a part of the equity and leave the rest in the home
- You are not required to make monthly repayment of the equity you draw
- When your heirs sell the home, the amount you withdrew is deducted from the profit of the sale
- You can also use a reverse mortgage to take the equity from your current home and buy a new home in another neighborhood and not have any mortgage payments
All reverse mortgage lenders operate under government regulations.
The requirements for this program are:
- at least one of the borrowers must occupy the home as their primary residence
- the borrower has to be at least 62 years old
- the borrower has to keep the property taxes paid
- the borrower has to maintain adequate homeowner's insurance, and any mandatory association dues
- routine maintenance of the home must be performed by the borrower to keep the property in good repair
- eligibility for the loan is not based on the borrower's credit rating, since no monthly payments will be required
If you have an elderly parent who is financially challenged or if you are a senior who would like more information on this program for yourself, we can help you find a qualified reverse mortgage lender. Just give us a call or send us an e-mail.
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