YARDLEY, PA, Apr 29, 2016—Often, homeowners wish to explore mortgage options that will allow them to access liquid assets. According to Wes Foster, Founder & CEO of Long & Foster Real Estate , 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 Foster.
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 Foster. 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 Foster, “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 Long & Foster Real Estate at firstname.lastname@example.org, 1-877-221-1776, or Long & Foster Real Estate.