What Is A Reverse Mortgage Loan And How Does It Work?

Chances are that you’ve seen a commercial for reverse mortgage loans before, but few people actually know what they are. It turns out that reverse mortgages are actually a powerful way to access the equity in your home, and supplement your income in your later years of life. Want to learn more about reverse mortgage loans? We’ve put together an in-depth overview of everything you need to know about reverse mortgage loans below:

Overview – What is a Reverse Mortgage Loan?

A reverse mortgage is a form of mortgage that allows you to access the equity in your home through monthly installments, a lump sum payment, or a line of credit that’s accessible at any time. It’s called a reverse mortgage because instead of you paying the bank money every month, the bank pays you every month. The best part about this is that the payments made to you each month are tax-free! Although a reverse mortgage may sound great, there are a few criteria you have to meet before getting one:

• Your reverse mortgage has to be taken out on your primary residence – it can’t be used on your second home or vacation home.
• You must be at least 62 years old to take out a reverse mortgage.
• If you are taking out a home equity conversion mortgage (a special type of reverse mortgage insured by the Department of Housing and Urban Development), you must attend a counseling session.
• https://standardlenders.com/what-is-a-reverse-mortgage-loan-and-how-does-it-work/