Reverse Mortgages: Are They Right For You?

Posted by: Lisa N. | Jan 01,2008

My mom suggested that I write about reverse mortgages. I’d never heard of this creature and was curious about the concept. Just like she thought, it ended up being a great topic for the Credit Tips blog. What you should know about reverse mortgages:

 

A reverse mortgage allows you to get a loan on your home that you don’t have to pay back until you sell the home. Hallelujah! Now those are my kind of loan terms. You get money from your home and you don’t have to repay the loan until you move. You can get money from your reverse mortgage as a monthly cash payment, a lump sum, as a line of credit, or as some sort of mixture of these cash options. Nice.

 

You have to be 62 or older in order to be eligible for a reverse mortgage. Hmm. But you don’t have to pay it back until you sell the home or pass away. My mom pointed out that you have to make sure there’s money in there to take out; otherwise, the money remaining in the home will all end up with the lender when you sell the home or pass away. That’s good advice.

 

Thanks, mom.

 

Compare and apply for home loans at LowerMyBills.com. LowerMyBills.com lets you compare interest rates from multiple lenders to find the right deal for you.

 

 

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