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  • Atricle Dump - Seniors Can Get Cash From Their Home Without Making Payments

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    mortgage becomes due and payable, some of your home's value will have been turned into loan advances and loan costs. Whatever remains is equity.

    While that notion might seem alarming, remember that's precisely what a rever

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    How can you get cash out of your home? One way is to sell - but then you have to move. Another way is to take out a home equity loan. But then you'll have to pay it back.

    A third option - for those 62 and older, at least - is a reverse mortgage, which requires neither a move nor loan payments. Reverse mortgages are gaining in popularity, but are not well understood. They are like conventional mortgages turned upside-down, and the concept is a little difficult to comprehend, at first.

    Both conventional and reverse mortgages create debt against your home. But they're different in a very important way. A conventional mortgage is a falling debt/rising equity transaction. A reverse mortgage is a rising debt/falling equity model.

    With a reverse mortgage, the lender sends you cash and you never make repayments, so your debt increases while your equity in your home shrinks. When a reverse mortgage becomes due and payable, some of your home's value will have been turned into loan advances and loan costs. Whatever remains is equity.

    While that notion might seem alarming, remember that's precisely what a revers

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    is a reverse mortgage, which requires neither a move nor loan payments. Reverse mortgages are gaining in popularity, but are not well understood. They are like conventional mortgages turned upside-down, and the concept is a little difficult to comprehend, at first.

    Both conventional and reverse mortgages create debt against your home. But they're different in a very important way. A conventional mortgage is a falling debt/rising equity transaction. A reverse mortgage is a rising debt/falling equity model.

    With a reverse mortgage, the lender sends you cash and you never make repayments, so your debt increases while your equity in your home shrinks. When a reverse mortgage becomes due and payable, some of your home's value will have been turned into loan advances and loan costs. Whatever remains is equity.

    While that notion might seem alarming, remember that's precisely what a rever

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    tle difficult to comprehend, at first.

    Both conventional and reverse mortgages create debt against your home. But they're different in a very important way. A conventional mortgage is a falling debt/rising equity transaction. A reverse mortgage is a rising debt/falling equity model.

    With a reverse mortgage, the lender sends you cash and you never make repayments, so your debt increases while your equity in your home shrinks. When a reverse mortgage becomes due and payable, some of your home's value will have been turned into loan advances and loan costs. Whatever remains is equity.

    While that notion might seem alarming, remember that's precisely what a rever

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    on. A reverse mortgage is a rising debt/falling equity model.

    With a reverse mortgage, the lender sends you cash and you never make repayments, so your debt increases while your equity in your home shrinks. When a reverse mortgage becomes due and payable, some of your home's value will have been turned into loan advances and loan costs. Whatever remains is equity.

    While that notion might seem alarming, remember that's precisely what a rever

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    mortgage becomes due and payable, some of your home's value will have been turned into loan advances and loan costs. Whatever remains is equity.

    While that notion might seem alarming, remember that's precisely what a reverse mortgage borrower needs - the ability to "spend down" their home equity, while they live in their home, without having to move or make monthly loan payments.

    A reverse mortgage comes due and must be repaid when you die, permanently move out (to live with a family member or to a nursing home, in most cases) or sell. Otherwise, you're free to stay in your home as long as you wish. If you pass on, your heirs can pay the loan back, with interest, and keep your home. Alternatively, they can sell it to a third party and repay the lender out of the proceeds (any excess goes into your estate).

    You don't need a minimum income to qualify. You could have no income or even still owe money on a conventional mortgage. In fact, some seniors get reverse mortgages to pay off a first mortgage.

    The only eligibility requirements are that you are at least 62 years of age and treat your home as a prin

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