Reverse mortgages offer elderly homeowners an exciting twist
on monthly mortgage payments: instead of making payments, you
can receive them. Reverse mortgages can be a great solution for
older people who want to leverage the wealth they have invested
in their home while still residing in it.
The requirements for a reverse mortgage are not many. First of
all, you must be a senior citizen aged sixty-two or above. Also,
you must own your home. While your credit history and all of the
usual information will be taken into account when determining
the specifics, if you meet those two basic requirements, then
you should be able to obtain a reverse mortgage.
Reverse mortgages allow seniors a lot of leeway when it comes
to repayment. Basically, repayment is not required until the borrower
abandons the residence. That means that a person with a reverse
mortgage will never be forced to move, or to make mortgage payments
that they can’t afford. Since many elderly people do not
draw a substantial income, reverse mortgages help them borrow
money without really having to worry about repaying the loaned
Of course, if the borrower doesn’t repay the reverse mortgage,
they forfeit their equity in the home. That means that they cannot
bequeath the house to another family member. In some cases, the
possibility of losing the home (even after death) is enough to
prevent someone from obtaining a reverse mortgage.
The obvious advantage to a reverse mortgage is the reverse mortgage
payments, which give seniors a source of extra money for things
like prescription drugs, which are notoriously expensive.