How does a reverse mortgage work – Seniors in or near retirement are becoming curios about the reverse mortgage program, those who are 62 years or older will be able to access their home’s equity though the HECM reverse mortgage.
Reverse mortgages how they work – the reverse mortgage programs are for seniors who own their homes and have equity available in them (equity can be calculated by taking the value of the home and subtracting any outstanding debts/liens against the home.)
Seniors who qualify can enjoy the benefits of accessing their homes equity at historically low interest rates, while never having to make a mortgage payment, keeping ownership of the home, and creating a new income source from the homes existing equity.
There are many reverse mortgages pros and cons – seniors should review the program and be familiar with how it works for them. The reverse mortgage is now an affordable option to tap into the equity in retirement thanks to the HECM saver program and many banks/lenders bringing down their origination fees. With the current market conditions right now is a great time to start learning more and even comparison-shopping some lenders for a HECM loan.