A Reverse mortgage works in exactly the opposite way that a "forward" or regular mortgage loan works. American Association for Retired Persons suggests, that one way to think about this mortgage is to visualize it as a "rising debt – falling equity" loan.
This is very different from the purchase mortgage you used years ago when you first bought your home. That loan was considered a "rising equity – falling debt" loan.
Although it was comforting to know you were building up equity over the years and working toward becoming mortgage free, now that you are there, you might be feeling a bit house rich and cash poor.Your largest asset might very well be your home. You can also get more information about mortgage by visiting https://pekoe.ca/.
But the only way you can access the cash, other than through a reverse mortgage, is to sell your home. Consequently, now might be the perfect time to consider reversing tapping into your home equity in order to have the financial freedom you deserve.
With a reverse mortgage, the lender pays the homeowner tax-free disbursements based on the amount of equity in the home, the interest rate and the age of the owners. The senior is not required to give up title, sell the home, or make monthly mortgage payments.
The payment stream is "reversed" and the lender now makes payments to the homeowner as long as the senior continues living in the home. There are no income, medical or credit requirements to qualify for this type of home loan. The money can be used for any purpose.