reverse mortgage
A Reverse Mortgage enables older homeowners (62+) to convert part of their equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the home owner based on the equity they have in the home.
For example, if the home’s value is $500,000 and the borrower owes $100,000, a reverse mortgage would literally pay out the equity you own on a monthly basis, until a cap is reached.
For example, if the home’s value is $500,000 and the borrower owes $100,000, a reverse mortgage would literally pay out the equity you own on a monthly basis, until a cap is reached.
