During these challenging economic times people are looking for help as they get up in years and find that things are getting more and more expensive and they might not be as comfortable in retirement as they would like to be. Another situation that comes up is children having a tough time taking care of their parents and all their expenses at the same time.
Reverse mortgages are a great tool to use if you have no other sources of income to turn to. It really comes in handy if you need to make some major repairs to a home as well.
In simple terms a reverse mortgage is a loan in which the homeowner converts a part of the equity in their home into cash. The loan does not have to be repaid until the homeowner no longer uses the home as their primary residence. To qualify for a reverse mortgage you must be 62 years of age, be a homeowner and either have a very low mortgage balance that can be paid off when you take the reverse mortgage or own the home free and clear. You are responsible to keep your taxes and insurance paid. Definitely a great tool to use to make yourself comfortable as you get older.
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