For Seniors, Reverse Mortgages Pay You Instead of the Other Way Around

Retirement isn't the only reason to get a reverse mortgage.

Some home owners take out reverse mortgages to pay off debt, make repairs or go on a vacation. Others get a reverse mortgage to buy a new home, after putting down cash from the sale of their present home. But the most common reason to consider taking out a reverse mortgage is to supplement retirement income.

If you have enough equity in your home and are over the age of 62, you can probably qualify for a reverse mortgage. You don’t even need to own your home free and clear of any mortgages. Plus, the lender will pay you a set monthly payment for as long as you live in your home.

The fees to obtain a reverse mortgage are high when compared to those for other types of loans. And it’s possible that upon your death, there will be no equity left for your heirs. But it’s a good solution for many home owners who need to increase monthly cash flow . . . read more about Reverse Mortgages.

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• How Much Does it Cost to Close Escrow?

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