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Reverse Mortgages
A reverse mortgage really is the opposite of a mortgage. Instead of borrowing money to purchase a home, a reverse mortgage allows you to take money out of a property you already own. This is commonly used by retirees as an income source. If you own a home and have built significant equity into it over time, the reverse mortgage will allow you to take that equity out in the form of cash. It can be received as a lump some payment or as regular monthly income payments. The reverse mortgage is paid back upon the sale of the property, or the death of the holder of the reverse mortgage. Essentially you sign over a portion of the ownership of the property to the mortgage company and they pay you for that portion.
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