If you are 62 years of age or older and have built up significant equity in your home, you may want to consider a reverse mortgage loan. Reverse mortgages are designed to help seniors who own their own homes use the equity as an additional source of income for the rest of their lives, while staying in their own homes.
Most people get a type of reverse mortgage called a Home Equity Conversion Mortgage (HECM) that's backed by the U.S. government. One of the greatest benefits is that the money you receive is tax-free.
With a reverse mortgage, you no longer make monthly mortgage payments ‒ the bank pays you instead. You can receive your payments monthly, as a lump sum or a line of credit. The amount of money is based on the current market value of your home. For the rest of your life, you can live comfortably in your home while enjoying supplemental income from the equity you worked long and hard to build.
The reverse mortgage loan (the amount borrowed, plus any interest) is repaid either when the home is sold or when you pass away. At that time, the equity remaining in the home belongs to you, your surviving spouse or heirs to your estate.
Many seniors today are finding that they just don’t have the money they need for retirement. A reverse mortgage can offer them financial freedom so they can enjoy their lives. And if you are have equity in your home but have trouble making the payments, a reverse mortgage may be just what you need to keep your home for yourself and your heirs.
To determine how much money you can quality for, use our reverse mortgage calculator. Give LoanMerica at call at (800) 391-9310 to see if a reverse mortgage is the best option to help make your golden years truly golden.