What is a Reverse Mortgage Meaning?
A reverse mortgage is a type that provides you with the option of borrowing equity from your house and also receive income tax-free. The reverse mortgage is different from a forward mortgage by allowing you to pay a lump sum payment or take out an unsecured line credit. The reverse mortgage does not require that you make regular payments. But, it does mean that your property taxes and home maintenance are your own responsibility. If you don't take care of your house, your lender could foreclose on and seize your house.
Mortgages with reverse interest can be an alternative to retirement.
Reverse mortgages are an increasingly popular option for those that are nearing retirement. The benefits are higher for senior citizens and don't impact the eligibility of programs such as Social Security. The Federal Housing Administration (FHA) which is responsible for reverse mortgages, is required to make sure Look at this website that they meet the requirements of regulations and rules to protect elderly people. These regulations and requirements can be found on the web. It is important to choose a lender you are comfortable with.
Reverse mortgages permit you to take out a loan against a portion of the equity in your house. The cash you receive is tax-free. The cash you get is tax-free. It is possible to receive it in an unrestricted lump sum, or a every month. It can also be used as credit lines. If you opt to cash out the funds, be sure