Reverse Mortgages Promoted By Washington Lawmakers
Best Syndication, June 12th, 2007
The topic of reverse mortgages seems to be making the news almost
daily lately. If you haven't heard about them yet from your local
newspaper or widely broadcast television commercials featuring the
actors Robert Wagner and James Garner, then it won't be long before you
do become aware of this innovative mortgage product aimed at seniors
age 62 and older.
Reverse Mortgages allow senior homeowners to tap into their home
equity to receive supplemental income on a tax-free basis. The income
they receive is not taxable and does not have to be repaid until the
homeowner permanently leaves their home. Social Security and Medicare
benefits are not affected. Additionally, the senior's estate or heirs will not be responsible for
repaying any shortfall if the loan balance exceeds the value of the
home at the time the senior leaves the home permanently.
Unlike traditional or forward mortgages there are no monthly payments
to be made, no credit qualifications and no income qualifications. The
main requirements are that the youngest person on the title be at least
62 years old, the home is used as the primary residence, the home be
either mortgage free or have a low balance on the current mortgage, and
that the home
is not a mobile home, a cooperative or on rented land.
Read more of this article. Learn more about Reverse Mortgages.