What exactly is a Reverse Mortgage?A Reverse Mortgage is a loan available only to homeowners 55 or older. The amount you can borrow is based upon several factors including your age and the value of your home.
What's the difference between a Reverse Mortgage and a traditional loan?
There are two main differences. First, unlike a traditional loan, you can get a Reverse Mortgage regardless of your income or credit rating.
Second, you are not required to make any payments on a Reverse Mortgage until you choose to move or sell your home. (However, you can make payments on the loan if you choose to do so. You’ll even get a discount on the interest rate if you do.)
When you do decide to move or sell, the loan is repaid from the proceeds of the sale of the home. After the loan is repaid, all remaining money belongs to you and your estate.
How much equity (money) will be left in my home after I repay the loan?
On average, homeowners have well over 50% of the value of their home left to enjoy after repaying the loan. This money belongs to you. The exact amount will depend upon several factors, including: the amount of your loan, the value of your home, and the amount of time passed since you took out the loan.
Repost by Steven Porter, REMAX Aboutowne Realty Corp.
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