What are the benefits of a reverse mortgage

One of the more common reasons people get a reverse mortgage is to pay off their existing mortgage. It can eliminate your monthly mortgage payment and improve cash flow during retirement. Often, it can also provide a growing line of credit available for future financial needs.

Your home may be your largest asset. It only makes sense to learn about reverse mortgages as part of your retirement planning.

A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home, without having to give up title, or take on a new monthly mortgage payment. The money received can be used for any purpose. The loan amount depends on the borrower’s age, current interest rates and the value of the home. The homeowner must remain current on property taxes and insurance.

A reverse mortgage does not have to be repaid until the borrower sells or moves out of the home permanently, and the repayment amount cannot exceed the value of the home.

After the loan is repaid, any remaining equity is distributed to the borrower or the borrower’s estate.

Call David Chee, NMLS ID#263222 at (800) 9673575. HighTechLending, Inc., Licensed by the Calif. Dept. of Business Oversight under the CRML. NMLS #7147. Branch #1485894. Equal Housing Lender. www.nmlsconsumeraccess.org.