What is a Reverse Mortgage, and how does it help seniors? A reverse mortgage allows seniors to tap into the equity they've built into their home. It's a loan against the home, and it doesn't have to be paid back for as long as the senior lives in the home. The money is generally tax-free because it's not considered income. Nor do the funds affect Social Security income.
Homeowners over the age of 62 who have equity in their home, and that home is their primary residence, qualify for a reverse mortgage. The amount of the loan is determined by the homeowner's age, the total value of the home, and the amount of equity in the home.
Monies can be distributed as a lump sum, or in monthly payments. Homeowners can use the money any way they wish, whether it's to purchase a vacation home, help pay bills, or put a child through college.
It's important to remember that the senior will still retain ownership of the home, and can never owe more than the home is worth.
Consult Ken Dellutri, Reverse Morgtage Specialist with American Portfolio Mortgage to see how a reverse mortgage can help you. 888-302-2762