A reverse mortgage has had its ups and downs since they were introduced during the Reagan administration. It is a financial tool that lets older people tap the equity of their home and age in place. This type of loan can help free up cash when seniors are in retirement. And in some instances, get rid of monthly mortgage payment.
Who Can Get A Reverse Mortgage Loan?
Reverse mortgage loans are made for older people who would like to tap into the equity of their homes. When doing so, they could boost their monthly cash flow without having to worry about monthly payments. If you plan to take out a reverse mortgage, you need to be at least 62 years old. Potential borrowers should undergo a home counseling session to make sure that they understand what they are getting themselves into.
This type of loan is only for primary residences. If you are planning to take out this loan against your vacation home or investment property, then you may not qualify at all. You have to live in the house for more than six months.
Read More Why You Should or Should Not Get A Reverse Mortgage
Some people say that parents don’t need to save up for their kids’ college education. There are college loans to help them. But, their parents can’t find a loan that will help them live a comfortable life after retirement. But, wait for a second. Are you sure there’s no loan for that? Isn’t a