A reverse mortgage is a financial option available to seniors which allows them to free up some of the accumulated equity in their home. This may be an appealing option for obtaining some extra income in your retirement to use for a variety of reasons; however, there are some important considerations to weigh before borrowing against your greatest investment. Here are some facts about reverse mortgages, and some tips for making the right financial choice. What Is A Reverse Mortgage? Sometimes called a lifetime mortgage, a reverse mortgage allows you to borrow against the equity in your home, which can be paid out either in one lump sum or in several payments over time. This amount does not have to be paid back to the lender during your lifetime provided you stay as a resident in your home and it remains your property. That percentage of the value of your home which you have taken out now becomes the property of the lender, and will be returned to them after the sale of the home. Your heirs still inherit the property upon your passing, and they have up to one year from that time to either refinance the property, or […]
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