Living in your own home – one that you've paid the mortgage off on – can provide wonderful security. For many elderly people though, they really need to tap the equity they have in the homes they live in. To help supplement their pensions with. This is where they try to learn about what is a reverse mortgage.
A reverse mortgage is actually a kind of loan. It's a loan where you don't have to pay anything back. Qualify for a reverse mortgage, and the bank makes regular payments to you every month that you can use for your monthly expenses. One day, all those payments may actually add up to more than what your house is worth. But that still doesn't matter – you don't ever have to pay anything back.
So what is a reverse mortgage, and why are the banks willing to give you a loan that you don't have to pay back? Of course, you do have to pay them back in one important way – they get the house once you move or pass on. Reverse mortgages are kind of like you’re putting your house up as collateral for cash right now.
A reverse mortgage is actually a kind of loan. It's a loan where you don't have to pay anything back. Qualify for a reverse mortgage, and the bank makes regular payments to you every month that you can use for your monthly expenses. One day, all those payments may actually add up to more than what your house is worth. But that still doesn't matter – you don't ever have to pay anything back.
So what is a reverse mortgage, and why are the banks willing to give you a loan that you don't have to pay back? Of course, you do have to pay them back in one important way – they get the house once you move or pass on. Reverse mortgages are kind of like you’re putting your house up as collateral for cash right now.
