If you’re like most people near or in retirement, you’ve built a significant amount of equity in your home. Many years of monthly mortgage payments have resulted in either a home you own free and clear, or one in which the principal balance is very low. A reverse mortgage lets you tap the cash right under your roof to supplement retirement income.
How does a reverse mortgage work? Homeowners who are at least 62 years of age can convert part of the equity in their homes into tax-free income – without having to sell the home, give up the title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payments are reversed. Instead of making monthly payments to a lender, a lender makes the payments to you.
A reverse mortgage is based on your age, the value of your home, current interest rates and the lending limit in your area. No repayment is required during your lifetime, or your spouse’s lifetime, and you can stay in your home as long as you choose without making a loan payment. Your heirs receive 100% of the remaining equity after the loan is paid off. There are no income requirements, it does not affect Social Security or Medicare benefits, and payments are not taxable.
A reverse mortgage can make your home perform to meet your financial needs.
Article Provided by:
Colonial National Mortgage
www.colonialnationalmortgage.com
