There are many benefits to getting a reverse mortgage. It allows you to receive cash from your home, pay off your mortgage, and make no monthly payments. These benefits last as long as you live in the home. Whereas a regular mortgage leaves you owing monthly payments, a reverse mortgage allows you to receive monthly payments from your home’s equity. This is much safer than a conventional mortgage or home equity line of credit. This is because the government guarantees you can live in the home for as long as you like with no obligation to repay the loan. Here are the facts about reverse mortgages:
- Receive a tax-free loan from the equity in your house
- Eliminate your current mortgage payments
- You are not required to make monthly mortgage payments
- No out-of-pocket expense to you
- The title to the home stays in your name
- You can do a reverse mortgage and keep the title in your living trust
- Your Social Security and Medicare benefits are not affected
*Borrowers must maintain home as principal residence, pay all taxes, insurance, maintain the home, and comply with all other loan terms. Failure to do so may result in foreclosure.