Reverse Mortgage
It seems like the latest thing for older people (senior citizens) to do to get cash and have money to live on is the reverse mortgage.
If you need money and your income is too low and your retirement benefits may not be enough the look into it.
I strongly recommend this web site http://www.aarp.org/money/revmort/
They can answer a lot of questions like whether to sell or get a reverse mortgage.
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It's also called a lifetime mortgage
You can get the amount in one lump sum or in payments.
The homeowner's obligation to repay the loan is put off until the house is sold or the owner dies or the owner leaves to go to a nursing home or some such situation. |
In a regular mortgage you make payments to the bank and your equity increases. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property.
If the owner gets monthly payments, or a one time payment of the available equity percentage based on their their age, then the debt on the property increases each month and the equity is reduced.
Oooops! There goes the kids inheritance...
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