Are they a good idea? Here is some information to help you with that.
In general, to be eligible for a reverse mortgage the youngest homeowner must be at least 62 years old and have sufficient home equity. You must also meet financial eligibility criteria as established by Department of Housing and Urban Development (HUD). You may need to set aside additional funds from loan proceeds to pay for taxes and insurance.
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, borrowers do not have to repay the loan until they no longer use the home as their principal residence or if they fail to meet the obligations of the mortgage. You can also use it to purchase a primary residence if you are able to use cash on hand to pay the difference between the loan proceeds and the sales price plus closing costs for the property you are purchasing.
Here is a link to HUD:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten
Here is a link to a MoneyTips article:http://www.moneytips.com/reverse-mortgages-101
Here is a link from MoneyTips concerning statistics:http://www.moneytips.com/number-of-reverse-mortgages-due-tripled-in-2015
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It's not what you make; it's what you keep that determines your lifestyle. | 05.28.16 @ 14:45