Reverse Mortgages are designed to help older homeowners manage their retirement finances by allowing borrowers to convert a portion of their home equity into liquid assets. Essentially, this type of mortgage is the opposite of a traditional mortgage in that the borrower receives payments from their home rather than paying into it.
But, unlike a standard mortgage loan, it requires no repayment until the borrower no longer occupies the residence. However, borrowers with reverse mortgages are still required to pay the real estate taxes, homeowners insurance, flood insurance, and association dues. Because of a government insurance program, the borrowers will never owe more than the value of the home. Once all borrowers have left the home permanently, any equity remaining after the property is sold and the loan is paid belongs to the heirs.
Contact our team to see if a reverse mortgage is best for you.