If you are 55 or older and own your home, you may qualify for a reverse mortgage. A reverse mortgage is a tax-free loan which lets you borrow up to 55% of your home’s equity value.
Qualifying for a reverse mortgage depends on a variety of factors including your age, home location, type of home, home equity, the and the appraised value of your home.
To get a reverse mortgage on your home, you must first close any other line of outstanding credit that’s secured by your home including a mortgage or home equity line of credit. You can use some of the money from the reverse mortgage for this process. Then, you can take the remaining funds and use them for other purposes such as supplementing your income during retirement.
The reverse mortgage must be paid back if the house is sold, or you pass away, and there are no monthly minimum payments to worry about. If you sell your house and the appraisal value has increased, the difference in funds is yours to keep.
The funds from the reverse mortgage are tax free, will not affect government or retirement benefits, and you can use your home value without selling it.
Reverse mortgages do accrue interest, and the reverse mortgage will have to be covered by your estate within a specific timeframe after you die, unless your home is sold. It may also take away value of your estate, which leaves less for your beneficiaries.
How to Find a Reverse Mortgage
Juno Mortgage can work with you to figure out which reverse mortgage services will best fit your needs and guide you through the steps to find a reverse mortgage.
