Did you know that if you are over 62 years of age and own your home, you may be eligible to receive a stream of income each month from the equity in your home? The reverse home loan mortgage is becoming a popular trend for many Americans who are losing their income for reasons such as the loss of a pension or rising medical cost.
A recent study has shown that senior citizens have credit card debt that is growing faster than any other age group. Many seniors are depending on credit cards to supplement their income each month. They continue to charge their credit card and have no idea how they are going to pay it back. An excellent alternative to using a credit card to survive is getting a reverse mortgage.
A reverse mortgage is simply a loan against the value of your home that does not become due until you move from your home. With a reverse mortgage, you will always remain in your home and your home will always belong to you. This means that you will still be responsible for property taxes and insurance on your home. The amount that you will receive on a reverse mortgage depends on the amount of equity that you have in your home. In general, the older that you are and the more equity that you have in your home, the more cash you should expect to receive.
If you are interested in applying for a reverse mortgage, do some shopping around. You will find that every bank will quote you a different interest rate. You will want to strike a balance between a low interest rate and a sufficient monthly payment.
Author: John Zinsky