A Reverse Mortgage Can Provide Needed Equity
Put simply, a reverse mortgage is a loan which allows a client to access equity in their home. A homeowner who is 55 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment, or line of credit. Unlike a forward mortgage (the type used to purchase a home) a reverse mortgage doesn’t require the homeowner to make any loan payments. The client pays back the loan when they move out of the home, sell it or the last borrower is deceased. This means you don’t need to make any payments on a reverse mortgage until the loan is due.