A reverse mortgage is a loan for senior homeowners, age 62+, who own the home and occupy it as primary residence. There are several ways to receive the loan proceeds from a reverse mortgage:
Lump Sum at closing
Term – equal monthly payments to homeowners for a fixed number of years
Tenure – equal monthly payments as long as the homeowner lives in the home
Line of Credit
or combination of the above
“Term” is the common form for reverse mortgage. Homeowners often use it as a source of tax free retirement income. They will not lose social security or medicare benefits. Reverse mortgage provides greater financial freedom and control, providing you with extra security during retirement.
Not many lenders are doing reverse mortgage. If you are interested, please make sure you understand all the terms and conditions. There are certain costs involved as well.
* Message from your Real Estate and Mortgage Broker, Andy Lam, email@example.com, 408-218-2513