A reverse mortgage or home equity conversion mortgage (HECM) is a type of home loan for older homeowners (62 years or older) that requires no monthly mortgage payments.
Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income.
A reverse mortgage lets you tap your home equity in the form of a lump sum, line of credit or monthly draws.
As long as borrowers maintain the home and pay the property tax and insurance premiums, the loan doesn’t have to be repaid until the last borrower dies, sells the home, or lives elsewhere for 12 consecutive months.
When the loan comes due, the homeowner will never owe more than what the home is worth. If your loan balance is $100,000, and you sell your home for $50,000, you will not be held responsible for the remaining $50,000. No matter how big the gap is between the sale price and the loan’s balance the homeowner nor their heirs can never be held responsible.
If the home sells for more than the loan balance, the leftover equity will go to the homeowner or to the heirs.
You can use a reverse mortgage calculator to get an approximate estimate of the amount of money that you may be eligible to receive from a reverse mortgage. Please note that you will need to speak to a lender to find out exactly how much you are eligible to receive.
We can get you in touch with a reputable lender that is licensed in all 50 states. Contact us or call +1 866-999-7875 and see how the reverse mortgage can benefit you.