Many people are discovering the positive benefit a reverse mortgage can have on their lives. Many more people have not yet heard the good news that the bank DOES NOT own your home when you do a reverse mortgage. You are the only one who owns the home, and you can give the property to your heirs through your will.
“When I looked into getting a HELOC [Home Equity Line of Credit] to fix-up our home, I thought we would have to make a payment every month which would have been hard for us. We discovered that a reverse mortgage provided a line of credit, and we can decide each month if we want to make a payment or not! Talk about flexibility! We don’t have to make payments at all, but we can if we want to. We have been able to repaint, get new carpet and update the kitchen, all things we have wanted to do for years. The reverse mortgage made it possible.” ~ RCB, Denver
You, or your heirs, will never owe more than the home is worth, even if the mortgage balance is higher than the value of the house when you pass away. Government mortgage insurance through FHA takes care of the difference and no one can ever come after you, your estate, or your heirs to collect, so you are protected.
You are not required to make a mortgage payment ever, but some homeowners would like to make a payment of an amount they determine, when they decide to do it. This is a perfect option with a reverse mortgage. You are in the “driver’s seat,” unlike with a traditional HELOC where you must make a monthly payment or go into default.
The funds from the reverse mortgage can be used for any purpose and are not taxable. Call your local Reverse Mortgage Specialist to learn more.
This article first appeared in My Primetime News, May 30, 2016.