A reverse mortgage enables a homeowner, typically someone at least 62 years old, to borrow money based on their home equity—the difference between the value of their home and the amount still owed on their existing mortgage. The borrower might receive that money through a lump-sum payment, m...
The plan that you choose will affect how much money you receive in the short and long runs, how quickly you use up yourhome equity, and how effectively a reverse mortgage assists your financial goals. Discover how the reverse mortgage payment plans work, along with their pros and cons. Key...
like a mortgage. An involuntary lien, on the other hand, is one that a creditor places against your assets when they're seeking judgment for nonpayment of debts. Here are some examples of both voluntary and involuntary liens, as well as how to get them removed....
A reverse mortgage can also be used to buy a home. The borrower opens a reverse mortgage for the home, then never has a payment. It’s essentially like receiving the reverse mortgage lump sum payment upfront (see next section). The difference is that instead of receiving cash, the funds ...
A reverse mortgage could also affect the ownership of your home down the line. If you live with someone and take out a reverse mortgage that you or they can’t pay back, they may lose their living arrangements in the event of a foreclosure. Don’t forget that although a reverse mortgage...
The lender will specify that the loan can only be used for property taxes, home improvements, maintenance, or some other purpose. This type of reverse mortgage is geared toward homeowners with low and moderate income. More Options:Taking Out a Second Mortgage vs. Refinancing ...
Reverse mortgages let older adults convert equity into cash and afford home expenses. Read on to learn the pros and cons of getting a reverse mortgage.
How are your taxes affected by a cash-out refinance? Among the tax benefits of owning a home, a cash-out mortgage refinance is considered a loan instead of income. That means you don’t have to pay income taxes on what you borrow. Cash-out refinancing has other benefits and tax ...
In this article, we'll look at each of the many different types of mortgages, explain all of those confusing terms like escrow and amortization, and break down the hidden costs, taxes and fees that can add up each month. We’ll start with the most basic question: What is a mortgage?
If asked to explain how a mortgage works, you might say: “A bank lends you money to buy a home, and you repay it, with interest.” That description isn’t wrong, but there are many other important variables that affect the experience of applying for, obtaining and repaying a mortgage...