BOULDER, CO, Apr 30, 2016—Often, homeowners wish to explore mortgage options that will allow them to access liquid assets. According to Phil Boren, Broker Associate of RE/MAX of Boulder, Inc. , for older homeowners, a reverse mortgage is an increasingly popular option for converting home equity into cash. Money can then be used to cover home repairs, everyday living expenses, and medical bills.
“Instead of making monthly payments to a lender, the lender makes payments to the homeowner, who continues to own the home and hold title to it,” explains Boren.
According to the National Reverse Mortgage Lenders Association, the money given by the lender is tax-free and does not affect Social Security or Medicare benefits, although it may affect the homeowners’ eligibility for certain kinds of government assistance, including Medicaid.
“To qualify for a reverse mortgage, homeowners must be at least 62 and own their own homes,” says Boren. No income or medical requirements are necessary to qualify, and they may be eligible even if they still owe money on a first or second mortgage. “In fact,” explains Boren, “many seniors get reverse mortgages to pay off the original loan.”
A reverse mortgage is repaid when the property is sold or the owner moves. It's important to note that should the owner die before the property is sold, the estate repays the loan, plus any interest that has accrued.
For more real estate information, please contact RE/MAX of Boulder, Inc. at email@example.com, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.