What is a Reverse Mortgage by Jason McConahy
What is a Reverse Mortgage by Jason McConahy WHAT IS A REVERSE MORTGAGE? In its simplest form, a reverse mortgage is a tool for people who are at least 62 years of age that allows you to borrow against your home’s equity for a variety of benefits. Any proceeds from the reverse mortgage are non-taxable, and there are no mandatory principal or interest payments on the borrowed money. If you choose not to make any principal or interest payments, the loan grows over time rather than getting smaller(which is the reverse to how loans are normally paid off). You can defer repayment until you sell the home or the last borrower on the loan passes away. If you choose to make principal and interest payments, then the loan functions like a line of credit where those funds are available to borrow again. The best part about this line of credit is that it grows over time! What can a reverse mortgage be used for? The technical name for a “reverse” mortgage is a Home Equity Conve...