What is a Reverse Mortgage?
A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay a loan each month. It can be a great tool to use to allow seniors to stay in their homes.
The cash you get from a reverse mortgage can be paid to you as:
- a single lump sum of cash;
- a regular monthly cash advance;
- a “credit line” account that lets you decide when and how much of your available cash is paid to you; or
- a combination of these payment methods.
No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. However, you must pay your property taxes and maintain your Homeowner’s Insurance. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
The Washington Post recently published this article HERE on reverse mortgages:
If you or a loved one has any questions about long-term care planning, please call your hometown law office of Townes & Woods, P.C. at 205-631-4019.