Mortgages, the word itself is scary enough but when you don’t understand what each one means, you could find yourself in a financial disaster. In a new article written for Realtor.com, Margaret Heidenry provides and in-depth look at reverse mortgages. It is meant for individuals older than 60 and meet additional criteria such as having a low balance and currently living on the property. It also discussed the way in which your money could be disbursed in addition to risks and safety measures you should be taking. Remember, just because you can doesn’t mean you should.
- Homeowners over 62 years of age who need more cash and have both few assets and few debts may be good candidates for reverse mortgages.
- The Initial Principle Limit is how much money an individual can qualify for, and is calculated based on factors like the homeowner’s age and the property’s value.
- The funds from a reverse mortgage can be received in a lump sum, as a line of credit or on a term or tenure basis.
“In a reverse mortgage loan, your lender pays you, slowly turning the home equity you’ve earned back into cold, hard cash.”