Reverse mortgages allow senior homeowners to tap equity for cash10.31.16
Reverse mortgages are an effective way for Baby Boomer and senior homeowners to access equity they’ve built on their homes without selling. These federally funded loans eliminate mortgage payments, though homeowners are still responsible for property taxes and insurance. They free up cash for home improvement, other debts, medical needs and everyday expenses. They make sense for homeowners who plan to “age in place” and stay in their homes long-term.
Reverse mortgages are repaid when the borrower’s home is sold or no longer the primary residence. The loan payment comes out of the property’s equity (and the homeowner can’t borrow more than their property is worth) so no debt transfers to heirs. Remaining equity can be passed on after the loan is repaid.
Terrie Cox, suggests her clients talk with a financial advisor if they’re considering a reverse mortgage. As RE/MAX’s top broker in Oregon and Washington, she has helped retirees and seniors transition into ideal living arrangements to prepare for their later years. To talk about your plan, call or text Terrie at (360) 607-4100 or email firstname.lastname@example.org.