3 Facts About Reverse Annuity Mortgage

Reverse annuity mortgages are a type of mortgage product that can be used in order to create a regular income stream for a homeowner. Here are some facts that you need to know about reverse annuity mortgages and how they work.

1. Regular Payments

With this type of mortgage, you will be able to receive regular monthly payments from your lender. You are essentially selling the equity in your home and the bank is paying you for it. This can be an ideal way to supplement your retirement income.

2. Age Requirements

This type of mortgage requires that you are at least 62 years old in order to qualify. This applies to both you and your spouse, if you want the full benefit of the program.

3. Information Session

In order to qualify for this type of loan, you have to go to an information session with a qualified counselor. These counselors work with reverse mortgages all the time and they will be able to answer any questions that you might have about the process. They will look at your individual situation and tell you if a reverse mortgage makes sense.

The funds from a reverse mortgage can be collected upfront, or received through monthly installments. Also, the money can be used for anything you need.

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