David Kirkpatrick

November 11, 2009

A reverse mortgage primer

Filed under: Business — Tags: , , , — David Kirkpatrick @ 4:54 pm

They aren’t for everyone, but if you have reverse mortgage questions this article from Kiplinger is a pretty good starting point.

From the link:

What is a reverse mortgage? It’s a loan on your house that lets you tap your home’s equity. Like a cash advance, a bank fronts you the money—either as a lump sum, a line of credit or monthly draws—and you have to repay it eventually, with interest.

Unlike a traditional mortgage, you don’t have to repay the loan during the term of the reverse mortgage. Instead, you pay it off all at once at the end of the loan. There are no income or credit qualifications, but homeowners must be 62 or older.

You retain title and ownership of your house. You are still responsible for paying the property taxes and the costs of insurance and repairs. If you still have a regular mortgage, you either have to pay it off before taking the reverse mortgage or use part of the proceeds from the reverse mortgage to retire it.

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