Not a lot of people know much about reverse mortgages, including industry professionals. When I was in the business, there were two people, in an office of forty, who knew about reverse mortgages, and that was the only business those two mortgage consultants did.
What is a reverse mortgage? A reverse mortgage is a low-interest loan for seniors that uses the home's equity as collateral. The loan amount is a function of the home's value and the age of the youngest homeowner. The loan does not have to be repaid until the last remaining homeowner either moves out or is deceased. The estate is not liable for any amount owed if the home does not sell for enough to cover the amount borrowed. At the same time, if there is any equity leftover from the sale, it goes to the estate.
There are some factors you should keep in mind if you are considering a reverse mortgage. Even though you are no longer making mortgage payments, you are still responsible for making tax and insurance payments, which is easily forgotten. You should also know that the income you receive may inhibit your qualifying for Medicaid.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment