Reverse mortgages let you tap cash, but be informed
USA Today, November 21st, 2005
A recent study by the National Council on the
Aging concluded that 13 million older homeowners are candidates for
reverse mortgages. That doesn't mean you should run out and get one.
But if you're eating franks and beans three times a week so you can pay
for your heart pills, a reverse mortgage could improve your standard of
living.
A reverse mortgage is a loan against your home
that doesn't have to be repaid until you move, sell your home or die.
You can receive a lump sum, a line of credit, monthly payments or a
combination. To qualify, you must be 62 or older. If the home is owned
jointly, both owners must be at least 62.
The amount you can borrow is based on your
home's value, current interest rates and your age. The older you are,
the larger the loan amount.
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