Money Saving Tips

As its name suggests, it’s the reverse of the home loan or mortgage you used to buy real estate. Instead of making monthly home loam payments to a bank, the bank pays you. You’re using the equity you’ve built up over the years. With reverse mortgages, homeowners older than 60 years of age can draw money from equity they’ve built up over the years without incurring new debt and without having to move out of their homes. If the balance equals or exceeds the value of the real estate, it can be signed over to the mortgage lender. You would never have to pay more than the house is worth. You must be more than 62 years old and you must have equity in your home, you probably can get a reverse mortgage on your primary real estate. You retain the title to your residence and still are responsible for maintaining it and paying property taxes. Most reverse mortgages in the United States are the Home Equity Conversion Mortgages, often referred to as HECMs. Home Equity Conversion Mortgages are insured by the FHA (Federal Housing Administration), and they’re available from private homeloan lenders.