Reverse Mortgage Refresher
Since not all our visitors are familiar with the reverse program, we will be posting occasional Reverse Mortgage Refreshers just to keep things simple.
Briefly, a reverse mortgage is for senior home owners aged 62 or older to convert their home equities to cash. A lender would determine the value of your home and provide you with the money. You need not pay it back until you sell, move out of the home or you die.
If you die, then your reverse mortgage loan becomes due for payment. Your heirs need to pay off the dues if they want to keep the home which has the reverse mortgage on it. Or the lender will have to sell the home in order to get back the money.
A reverse mortgage is a non-recourse type of loan. If you move from your home or sell it off then the reverse mortgage becomes due. You never have to pay more than the value of the home, even if the loan amount is larger. This tends to protect you and your heirs from owing more than the home is actually worth.
