Reverse Mortgages - Get The Money You Need - Part 1 Of 4Posted by Nick Niesen on October 29th, 2010 Reverse Mortgages are loans that allow you to borrow back the equity in your home. Just as you once paid the bank, the bank now pays you. Isn't that a nice change? If you are 62 years of age or older, they are a way to borrow against the equity in your home (the value of your home minus any mortgage debt you now have) to provide you with tax-free income. Seniors struggling because of falling retirement account balances and increases in the cost of medical care are looking for new sources of cash to maintain their standard of living. The amount you can borrow depends on your age, the value of your home and interest rates. Fortunately, you continue to own and live in the home for the life of the loan. There are no loan payments until you sell the house, die or move out for a period of a year or longer. You can get the money as a line of credit, a monthly payment, a lump sum, or a combination of all of these. A monthly payment is a guaranteed of income for as long as you live in your residence, whereas; a lump sum could be used as you wish, such as to purchase an annuity that could provide you with a life long income. With a line of credit, you don't have to pay interest on money you haven't withdrawn and your money will earn interest while it's waiting to be used by you. A Reverse Mortgage might be worth considering if: -You plan to stay in your home. What are some of the potential advantages of Reverse Mortgages? -It can help you maintain your financial independence or improve your quality of life. If you're a senior, I hope you can see the benefits of taking advantage of this income source, if you need it. This is a four part series, one each week right here, same location. In Part 2 next week, we'll explore much more, including the drawbacks of a reverse mortgage and what types are available. Like it? Share it!More by this author |