When a Reverse Mortgage Makes Sense
Advantages of a Reverse Mortgage
Reverse mortgages free individuals from meeting the requirements of traditional home loans. There are:
- No monthly mortgage payments
- No constraints on how the money is used
Also, heirs can decide to repay the loan or allow the lender to sell the home. They are not liable if the sale price doesn’t cover the entirety of the loan.
Do I Qualify?
Homeowners must meet the following requirements before qualifying for a reverse mortgage. Individuals must:
- Be 62 years of age or older (if a couple, the oldest member of the couple must be 62 or older)
- Take the loan out on their primary residence
- Have ample equity in their home