After years of making mortgage payments, a reversible mortgage is a means of using a home’s equity to provide supplemental income for seniors.
What is a Reversible Mortgage?
A reversible mortgage begins paying the homeowners through the equity that has accrued in their home. This type of creative financing, offers seniors a way to supplement their fixed incomes without taking out loans or borrowing from friends or family members. Getting older is an expensive stage of life, and most homeowners do not have adequate funds to sustain their lifestyles through decades in retirement. Many homeowners decide on a reversible mortgage to insure that they can live independently and worry free, for as long as possible.
Who Qualifies for a Reversible Mortgage?
Age is the first qualification; and the older, the better. Homeowners must be at least 62 years old and own their home free of mortgages or have amassed enough equity to qualify for this type of reverse mortgage program. The home must also be the primary residence and kept in good repair at the homeowner’s expense. All related insurance and taxes must be current in order to keep the home under the terms of the agreement. Condominiums and multi family dwelling are also considerations for a reversible mortgage.
Where is Information about a Reversible Mortgage?
Information concerning a reversible mortgage can be gained through mortgage lenders and informational online sites. To answer initial questions, spend some time reviewing the facts at various websites that offer the most current information about a reversible mortgage. Prepared with enough facts, meet with local lenders and discuss the benefits of a reversible mortgage. Include close family members and friends that may be affected by your decision before finalizing your plans. Reach out and let your home work in your favor with supplemental income.
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