I've just finished 5 courses in preparation of my brokers license. Also just finished renewal topic number 3 for my salesperson license. Yep, lots of studying going on.
This topic was about Reverse Mortgages. A program developed to help equal out the budget for our Senior Citizens that may need a bit of extra cash for the remainder of their lives or just a short period of time.
It is for those that are homeowners with very little, or no mortgage, on their residence. Must be at least 62 years old, but there is no income requirement. Yep, none.
You can't have a home that is worth 800k and expect to get 800k. It's a calculation to assist a little bit, not the whole kit and caboodle! There are limits. It depends upon life expectancy, home value, location, FHA limits. Depends on tenure, term, credit line, or lump sum.
Many calculations, many choices. But it could certainly help out a senior that has some unexpected short or long term expenses.
The mortgage balance only comes due when the homeowner dies or leaves the residence for more than 12 months. It can always be paid off earlier though.
This is just a brief synopsis of the program. Most important thing I kept reading? Making sure that if you think this program could help you to find a lender that has a lot of experience in helping Seniors with a Reverse Mortgage.
Nothing would be worse than going to an inexperienced lender,
and having something harm the equity you've been building for so long!
We're all going to be here someday, think how this could help.