reverse mortgage basics

Reverse Mortgage Advantages

Reverse mortgages aren’t necessarily the right fit for everyone, but they do offer several advantages -- especially if you hope to stay in the same place for several years. Which of these benefits are you likely to derive from a reverse mortgage?

1. It may allow you to receive ongoing income and still remain in your home.
2. It may help you pay off your existing mortgage.
3. The loan proceeds you receive won’t be taxed.

These are ALL advantages a reverse mortgage may offer. The interest rates charged on reverse mortgages are also sometimes lower than those on conventional mortgages and home equity loans. You can receive cash from the loan as a lump sum, in monthly payments, as a credit line, or in any combination of these. You and your heirs cannot be held personally liable if your loan balance exceeds the amount for which your home ultimately sells and may keep any sales proceeds left after the loan balance is repaid.