Question:
What is a reverse mortgage?
Beth
Spartanburg, South Carolina
Answer:
Reverse mortgage is using the equity in your home that can be drawn upon as needed, often used as income and does not have to be repaid till the property is sold or the owner dies. Funds drawn against the loan are not taxable and not considered income. There are no payments made and interest is compounded and deferred and added to the principle balance. These loans are mainly used by lower or fixed income, older folks, minimum age for this loan is 62. Making the equity in ones home available can help people to continue to live in there own home and on their own.
Elsewhere…
— Reverse Mortgage Loan Rates and Lenders