You can keep living in your home, and you can use the cash however you like. a line of credit you can borrow from, up to a certain limit.term payments, giving you regular payments for a limited time.an ongoing annuity, giving you monthly payments.

a lump sum, giving you all the cash at once.Most reverse mortgages are known as Home Equity Conversion Mortgages (HECM) and can pay out funds in any one of the following ways: If you receive the loan, the financial institution will provide funds in exchange for your agreement to pay back any money you borrow in a lump sum. You can apply for a reverse mortgage based on your home equity if you are at least 62 years old. Save 10% Today How does a reverse mortgage work? If you can’t afford to pay off the loan when it comes due, you may be forced to either sell your home or take out a traditional mortgage to pay it off. However, some reverse mortgages are structured to come due on a certain date. If you live in the home for the rest of your life, your estate will pay off the loan after your death-but there are federal protections in place to help make sure your estate won’t owe more on that loan than the value of your home. Instead, you’ll need to pay the loan off in a lump sum if you sell your home, or if you move away from it (whether or not you sell it). What makes a reverse mortgage special is that you don’t have to make payments on the loan. If the reverse mortgage is well structured, there isn’t really a catch, but the loan does need to be paid off eventually, plus any accrued interest, just like any other loan. In that case, your home equity would be the entire market value of your home. It’s not uncommon for some applying for a reverse loan to have their mortgage already paid off. In other words, it’s the amount of money you’d get to keep after selling your home and paying off the mortgage. Home equity is the market value of your home minus anything you still owe on your mortgage. What is a reverse mortgage?Ī reverse mortgage is a way for homeowners who are at least 62 years old to get cash from their home equity without having to sell their home and without having to make any mortgage payments.Ī reverse mortgage is still a loan-it’s not free money-but under the right conditions, it can be a good choice to help you tap into the home equity you’ve spent so many years building. As a result, homeowners who are at least 62 years old can now tap into their home equity, a huge financial asset, to get cash through a reverse mortgage. In fact, between 20, home prices jumped over 13%. In recent years, home values have risen dramatically.

Quicken for mac 2015