Marino on Money: November 25
Should I consider a reverse mortgage?
Recently, many people over age 62 are considering reverse mortgages. With retirement balances lower than previous years, some seniors are looking for other ways to supplement their income, or pay for medical expenses. As a result, reverse mortgages are becoming a popular choice.
Reverse mortgages allow borrowers to access the equity in their homes without selling or moving away. Borrowers can receive a lump sum, monthly cash payment, a line of credit, or a combination. Currently, the line of credit is the most popular form of reverse mortgage.
The loan does not last forever. When the owner dies or moves away, the loan must be paid off. Fortunately, whoever inherits the home after death may not need to sell the home. That person can keep the home if he or she can pay off the reverse mortgage or refinance the loan.
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