What is a Reverse Mortgage?
A reverse mortgage is a type of loan available to seniors 62 and older who own their home.
With a reverse mortgage, you can receive a lump sum of cash, monthly cash payments, or a line of credit. There is no down payment required and you don’t need to make any payments on the loan.
A reverse mortgage is paid back when you pass away or move and sell your home. The proceeds from the sale of your home are used to pay off the principal of the loan you received, as well as any interest, mortgage insurance premiums, and other fees. Any excess proceeds from the sale are returned to you or to your heirs.
If the value of your home decreases and no longer covers the entire cost of your loan, the lender is responsible for absorbing the loss. They cannot require you or your heirs to pay the difference. The value of your loan can also exceed the value of your home if you opt to receive monthly payments and live for a long time.
Want to learn about reverse mortgages in Indiana and Kentucky? Contact us today for a complimentary consultation on a reverse mortgage with Richard Dixon at Mortgancial Planner, your #1 one mortgage broker in Indiana.