You’ve paid for your home for years, now let your home start paying you. Choose Reverse Annuity Mortgage for that added, extra income you need.
A Reverse Annuity Mortgage is a great way for someone to use the equity of their home to pay them back in a stream of payments. A Reverse Annuity Mortgage is, in essence, a loan that is borrowed from the equity of your home. These will be lifetime annuity payments. The best benefit is that you are not responsible for paying back the amount of the loan. Since your home is providing the loan then it will be your home that will repay it.
WHO SHOULD USE A REVERSE ANNUITY MORTGAGE:
In order to take advantage of using a Reverse Annuity Mortgage you must be 62 years of age or older. You do not have to be retired, though, to take advantage of this great borrowing opportunity. The focus group for a Reverse Annuity Mortgage are those who are older and who may or may not be retired. Those individuals would seek out this type of mortgage if they need extra income and do not want to sell their house, or if they just wanted to use the equity of their home for extra retirement income. Another great reason to choose this option would be because the owner still maintains the title and direct ownership of the house.
HOW DOES THE REVERSE ANNUITY MORTGAGE GET REPAID:
As stated before this type of mortgage is a secured loan using the equity of your home. As the payments paid out increases so does the amount of the loan to be repaid. You do not have to pay back the loan. The way the loan gets repaid is from death or moving out of the house. Then the property is sold and the proceeds repay the amount of the loan.
Related posts:
- Should I Buy An Annuity With Some Of My Reverse Mortgage Proceedings?
- What Other Options Should I Consider Besides A Reverse Mortgage?
- Does A Reverse Mortgage Count As Income?
- Can My Home Be Taken Away From Me If I Have A Reverse Mortgage?
- What Are The Differences Between A Mortgage & A Reverse Mortgage?