Learn the Basic about Reverse Mortgages

Reverse mortgages have been around a long time, but they have only become popular in the US in the past several years. These loans are called "reverse" because in many ways they work opposite to a traditional mortgage. Whereas traditionally you take out a mortgage and pay it back monthly over years, a mortgage in reverse pays you using equity from a home you already own. Reverse mortgages have easy qualifying guidelines.

• You must be 62 years old or older (get more information about the reverse mortgage age).
• You must own your home free and clear or have significant equity.
• You cannot be in the middle of a bankruptcy.
• You don't need to prove any income.
• You don't need to have any assets other than your home.
• You don't need a good credit rating.
• You must occupy the home as your primary residence.

Four Ways To Get Your Money

1. To bridge an income gap for a specified time, for example if you want to delay getting your Social Security benefits, reverse mortgages offer term payments. This gets you a specific monthly payment fr a predetermined number of years.

2. If you want money you can count on every month for as long as you live, reverse mortgages offer tenure payments. Payments are lower, to account for the uncertainty of how long you'll be receiving them.

3. If you want to pay off bills or medical expenses, you need a big amount all at once. The lump sum payment option allows you to take your maximum loan amount all at once.

4. If you just want the security of available funds in the event something unexpected comes up, try a line of credit. This option can be the least expensive reverse mortgage.

Finally, you can combine these methods for a custom payment solution.

Paying Off a Reverse Mortgage

A reverse mortgage is loan. You do have to pay it back. Once you no longer occupy the home as your primary residence, if you die or move, the home is sold to repay the loan balance. Any money left over can go to you, if you have moved, or your heirs, if you die. If, when the house sells, there are not enough proceeds to pay the reverse mortgage in full, the lender cannot come after you or your heirs (reverse mortgage heirs are protected) or take any of your other assets. Reverse mortgages are non-recourse loans, meaning the collateral, the house, is all the lender can use to pay the balance due. Get more information about paying off a reverse mortgage.

Getting Started

If a reverse mortgage sounds like the answer you have been looking for, talk to a reverse mortgage lender today. You should also visit the learning center at BestReverseMortgage to educate yourself further. You will find information on every topic related to the reverse mortgage loan approval process. Make a list of any questions and concerns and discuss them with your reverse mortgage lender. Find a reverse mortgage lender at this site.