Reverse Mortgage in the USA: Is It the Right Choice for You?

 

Reverse Mortgage is a loan specially designed for American homeowners aged 62 and older who want to convert part of their home equity into cash. This loan can provide financial relief for retirees without selling their home or making monthly mortgage payments. If you want to know more about this mortgage type, stick to this blog. At Dream Home Mortgage, we have outlined every crucial information about reverse mortgage in the USA.

What is Reverse Mortgage & How Does It Work?

In reverse mortgage, homeowners become eligible to borrow against the value of their home while still living in it. This mortgage type is not like your traditional mortgage. This mortgage works in vice versa. In a traditional mortgage, what you do is pay the loan amount to the lender, but in a reverse mortgage, the lender pays you back. The only scenario where the loan is paid back is when the homeowner sells the home, moves out permanently, or passes away.

Some of the key features of a reverse mortgage are given below:

• There is an age restriction of 62+ years to get eligible for this loan type.
• Vacation or rental homes don’t qualify; the home must be your primary location only.
• The loan has to be repaid when the last borrower moves out or passes away.
• However, there are no monthly mortgage payments for borrowers, but they have to pay property taxes, homeowners insurance, and maintenance costs.

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