Is a Reverse Mortgage the Right Choice for You?By Karen Lawson
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Reverse mortgage loans were designed by lenders to assist senior homeowners in accessing home equity to improve their cash flow. These loans are subject to eligibility requirements, and a reverse mortgage may not be appropriate for all situations.
A Mortgage Loan That Pays Me? How Can That Be?Homeowners who've owned their homes for many years often accumulate significant amounts of home equity. Generally, home equity is the difference between what you owe on mortgage loans and what your home is worth. Many seniors pay off their mortgages, but find that they need more cash to live comfortably and maintain their homes. Reverse mortgages allow these homeowners to draw on their home equity without selling or taking on additional debt. The reverse mortgage does not have to be paid until the homeowners vacate or sell the home. Designed for the unique needs of senior homeowners, reverse mortgage loans are only available to homeowners 62 years of age and above. Here are more general qualifications required for getting a reverse mortgage:
About the Author
Karen Lawson is a freelance writer with more than 15 years of experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.
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