This article aims to provide some reverse mortgage counseling for the general public. A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances, but requires no payments for the duration of the loan. Since there are no monthly payments during the life of the loan, the balance grows larger and the equity in the home gets smaller. Any reverse mortgage counseling company can tell you that you must be at least 62 and own your own home or condominium in order to qualify for a reverse mortgage.
There are no income or credit requirements to qualify and furthermore, based on the amount of benefit, which you qualify for, you may be eligible for a reverse mortgage even if you still owe money on your first mortgage. You are recommended to contact a reverse mortgage counseling company before applying for a reverse mortgage.
A benefit of these loans is that they are "non recourse," which means that no matter how high the loan balance grows, the borrower or their heirs never owe more than the home's market value. The proceeds from a reverse mortgage can be used for anything: daily living expenses; home repairs and home improvements; medical bills and prescription drugs; pay-off of existing debts; education; travel; long-term health care; retirement and estate tax planning; and any other needs you may have. You must first meet with an independent reverse mortgage counseling expert before applying for a reverse mortgage. The reverse mortgage counseling role is to educate you about reverse mortgages, to inform you about other alternative options available to you given your situation, and to assist you in determining which particular reverse mortgage product would best fit your needs if you elect to get a reverse mortgage.
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