Benefits Of Reverse Mortgage

Enhancing your retirement years: The funds from a reverse mortgage can be used for anything. Common uses include supplementing retirement income to cover daily living expenses; repairing or modifying your home covering health care expenses; paying off existing debts; taking a vacation; paying property taxes; and preventing foreclosure.

What are my payment options? You can choose to receive the money from a reverse mortgage all at once (lump sum), as fixed monthly payments (for up to life), as a line of credit, or a combination of these. The most popular option chosen by more than 60 percent of borrowers, is the line of credit, which allows you to draw on the loan proceeds at any time.

Mandatory Counseling: Before applying for a reverse mortgage, you must first meet with a counselor. The counselor's job is to educate you about reverse mortgages, answer your questions, and offer alternative options depending on your situation.

Paying Back Your Loan: No monthly payments are due on a reverse mortgage while it is outstanding. The loan is repaid when you cease to occupy your home as a principal residence, whether you (the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out. The amount owed can never exceed the value of your home.