Also similar to a traditional mortgage, homeowners who take out a reverse mortgage put up their house as collateral for the loan—that means you lose your house if you don’t live up to the terms of the loan. Can we talk for a second about how risky that is? Why in the world woul...
What is a reverse mortgage? A reverse mortgage is a loan that exchanges home equity for cash. Using a reverse mortgage, a homeowner borrows money based on the amount of equity they currently have and pays that amount back once the home is eventually sold. It’s called a “reverse” mort...
A reverse mortgage is a loan where the lender pays the homeowner — essentially buying a portion of their home’s equity from them. “A reverse mortgage means you don’t make any payments, and the loan balance increases each month,” says Steve Hill, a mortgage broker at SBC Lending in ...
A reverse mortgage is a loan where the lender pays the homeowner — essentially buying a portion of their home’s equity from them. “A reverse mortgage means you don’t make any payments, and the loan balance increases each month,” says Steve Hill, a mortgage broker at SBC Lending in ...
In fact many don’t realize that because it is a reverse mortgage, a payment can be made to offset the interest that accrues on the loan. While it’s not required, it is certainly an option a homeowner has – whether they want to pay anything at all, no matter how large or small,...
A reverse mortgage is repaid when the borrower dies, permanently moves from the home, or the property is sold. Instead of paying the bank monthly and the equity in your home growing, the bank pays you regularly, and the equity could shrink. ...
How to Decide if a Reverse Mortgage is Right for You Sadly, even great financial products for seniors appear to attract their share of scammers and sharks. Remain especially wary of unsolicited offers for reverse mortgages, even from service providers, friends, or family. Also, treat too-good...
What Is a Reverse Mortgage, and Is It Right for You?A reverse mortgage lets seniors access home equity without monthly payments. Learn how it works, its risks and its potential benefits. AboutNathan Paulus Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of...
What Is a Reverse Mortgage, and Is It Right for You?A reverse mortgage lets seniors access home equity without monthly payments. Learn how it works, its risks and its potential benefits.
sales people have talked seniors into taking out lump-sum reverse mortgages to "reinvest" their equity. That can result in disaster when the investments don't pay enough to make the loan worthwhile, or when the whole investment is a scam aimed at tricking the senior out of his or her ...