What is a Reverse Mortgage?
The goal of the Reverse Mortgage is to allow senior homeowner to have access to some of the equity that they have built up in their home to have additional financial freedom. The overall costs and interest rates are very reasonable so it is important the senior homeowner should educate him or herself with the feature and benefits of the Reverse Mortgage and as well as its overall costs.
The Federal Housing Administration (FHA) insured Reverse Mortgage came out in 1989. Since then, approximately 1 million senior homeowners have taken out the Reverse Mortgage. According to a recent study by AARP, about 93% of the senior homeowners who have taken out a Reverse Mortgage are happy with it.
The Reverse Mortgage is designed for homeowner(s) age 62 and older. Not everyone will qualify. The senior homeowner must have a certain amount of equity in the home to qualify for it. The financial benefits are based on the age of the youngest homeowner (has to be at least age 62), and how much the home is currently valued at. Any outstanding lien or judgment against the home has to be paid off within the Reverse Mortgage program (e.g. mortgages, tax liens, credit card judgments).