Exploring retirement options
with a Reverse Morgage.
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AARP Reverse Morgages
The American Association of Retired Persons explains all about reverse morgages.
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Morgage Rates
Reverse mortgages may have fixed or variable rates. Most have variable rates that are tied to a financial index and will likely change according to market ...
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Money Magazine
What good is a real estate boom if you don't want to sell your house? With a reverse mortgage, seniors can cash out without moving out.
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Sound Mind Investing
Reverse mortgages are the ultimate in "buy now, pay later" loans. That's because you don't have to repay them at all. Ever. Your estate does...
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Latest Reverse Mortgage News
Reverse Mortgage Alternatives
The biggest drawback with reverse morgages are the high upfront costs. Some seniors may want to consider other options to tap their home equity, particularly if they do not think they will remain in the home for at least five years. For example, if a home is paid for, the owner can simply take our a 10 year mortgage against the home, and use the proceeds to supplement their income.
The disadvantage to this is that, unlike a reverse morgage, the borrower must make a monthly payment to the lender. Of course these payments can be made with the actual loan itself, but at some point the home will need to be sold to pay off the balance of the loan, just as with a reverse mortgage.
A traditional mortgage may require more discipline, but is usually a more economical way to tap into the home’s equity. Other options that can free up home equity but avoid the high upfront costs of a reverse morgage include: 1) intra-family loan or sale-leaseback and, 2) selling and moving to a less expensive dwelling or location.