You may have been hearing about reverse mortgages lately. It seems that the topic has been everywhere, in the news, and on the internet. But many are still in the dark as to what exactly a reverse mortgage is; so let’s discuss the basics.
What is a Reverse Mortgage?
Simply put, a reverse mortgage is a type of home loan that converts some of the equity you have built in your home into cash flow. This is a very useful type of loan that carries few of the risks of a more conventional second mortgage.
In order to qualify you must meet several criteria:
- Age. You must be 62 years or older.
- Low or no mortgage payment. You must either own your home outright or have a very low payment remaining.
- Taxes & fees. You must have the financial ability to pay property taxes and associated fees.
- Residence. Finally, you can only get a reverse mortgage on a home in which you currently reside.
To learn more, contact First Choice Lending Services today.