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   What is a reverse mortgage?

   • Reverse mortgages are designed for older homeowners who own their homes and need a source of money. The most common type of reverse mortgage is the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM), which is for homeowners 62 and over.

   What Is a Reverse Mortgage? Types, How They Work, Pros & Cons

   www.investopedia.com/what-is-a-reverse-mortgage-8620150

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   What are the different types of reverse mortgages?

   • The most common type of reverse mortgage is the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM), which is for homeowners 62 and over. You must have at least 50% equity in your home for these loans, and the home must be your primary residence.

   What Is a Reverse Mortgage? Types, How They Work, Pros & Cons

   www.investopedia.com/what-is-a-reverse-mortgage-8620150

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   Are there alternatives to a reverse mortgage?

   • If you need funds and want to tap your home equity, you have alternatives to a reverse mortgage. You can use a home equity loan, home equity line of credit (HELOC), or cash-out refinance loan to access your equity. There are no age requirements for these loans, but you may face stricter credit requirements than you would with a reverse mortgage.

   What Is a Reverse Mortgage? Types, How They Work, Pros & Cons

   www.investopedia.com/what-is-a-reverse-mortgage-8620150

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   Is a reverse mortgage right for You?

   • It allows you to tap into your home’s equity without needing to make monthly loan payments or sell your home. But a reverse mortgage does come with drawbacks, such as the need to keep up with home maintenance, homeowners insurance premiums, and property tax payments.

   What Is a Reverse Mortgage? Types, How They Work, Pros & Cons

   www.investopedia.com/what-is-a-reverse-mortgage-8620150

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2. www.investopedia.com › what-is-a-reverse-mortgageWhat Is a Reverse Mortgage? Types, How They Work, Pros & Cons

   www.investopedia.com › what-is-a-reverse-mortgage

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   Apr 1, 2024 · A reverse mortgage allows older homeowners to tap their home equity for money to use for other purposes. It’s essentially a loan against a home that you either own...

   • How Reverse Mortgages Work

     A reverse mortgage is a way to access your home’s equity....

   • Reverse Mortgage

     A reverse mortgage is a type of home loan for seniors ages...

3. www.nerdwallet.com › article › mortgagesReverse Mortgage: What It Is, How Seniors Use It - NerdWallet

   www.nerdwallet.com › article › mortgages

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   Jan 30, 2020 · A reverse mortgage is a home loan that allows homeowners 62 and older to withdraw some of their home equity and convert it into cash. You don't have to pay...

4. www.forbes.com › advisor › mortgagesReverse Mortgages: How They Work And Who They’re Good For

   www.forbes.com › advisor › mortgages

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   • What Is A Reverse Mortgage?
   • How Does A Reverse Mortgage Work?
   • Types of Reverse Mortgages
   • Who A Reverse Mortgage Is Right For
   • Who Should Avoid A Reverse Mortgage
   • How and When to Repay A Reverse Mortgage
   • Pros & Cons of Reverse Mortgages

   Think of a reverse mortgage as a conventional mortgage where the roles are switched. In a conventional mortgage, a person takes out a loan in order to buy a home and then repays the lender over time. In a reverse mortgage, the person already owns the home, and they borrow against it, getting a loan from a lender that they may not necessarily ever r...

   See full list on forbes.com

   The process of using a reverse mortgage is fairly simple: It starts with a borrower who already owns a house. The borrower either has considerable equity in their home (usually at least 50% of the property’s value) or has paid it off completely. The borrower decides they need the liquidity that comes with removing equity from their home, so they wo...

   See full list on forbes.com

   Most reverse mortgages are government-insured loans. Like other government loans, like USDA or FHA loans, these products have rules that conventional mortgages don’t have, because they’re government-insured. These include eligibility criteria, underwriting processes, funding options and, sometimes, restrictions on uses of funds. There are also priv...

   See full list on forbes.com

   Reverse mortgages aren’t good for everyone. Only certain borrowers qualify, but their structure also only makes them appropriate for certain borrowers. A reverse mortgage may make sense for: 1. Seniors who are encountering significant costs late in life 2. People who have depleted most of their savings and have considerable equity in their primary ...

   See full list on forbes.com

   While there are some cases where reverse mortgages can be helpful, there are lots of reasons to avoid them. A reverse mortgage isn’t a good option if: 1. You can’t find a trustworthy lender or a reputable loan program 2. You have outside savings or life insurancethat you can tap to cover expenses 3. You have heirs who want to inherit your property ...

   See full list on forbes.com

   Most people who take out reverse mortgages do not intend to ever repay them in full. In fact, if you think you may plan to repay your loan in full, then you may be better off avoiding reverse mortgages altogether. However, generally speaking, reverse mortgages must be repaid when the borrower dies, moves, or sells their home. At that time, the borr...

   See full list on forbes.com

   Pros

   1. Provides cash to cover important medical expenses late in life 2. All costs can be rolled into the loan balance 3. Interest rates are competitive with other types of mortgages 4. Loans don’t have to be repaid out of pocket

   Cons

   1. Total loan costs, inclusive of fees, can be considerable 2. The loan must be repaid for heirs to inherit your property 3. Must own the property outright or have at least 50% equity to qualify 4. You have to avoid scams 5. Most loans require mortgage insurance

   See full list on forbes.com

5. Videos

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     Reverse Mortgages: Know Before You Owe — consumerfinance.gov

     Aug 24, 2017

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     Reverse mortgage: What is it and how it works

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     Reverse Mortgage Explained: For Beginners

     Apr 30, 2023

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6. www.chase.com › what-is-a-reverse-mortgageReverse mortgage: What is it & how does it work? | Chase

   www.chase.com › what-is-a-reverse-mortgage

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   A reverse mortgage is a loan for homeowners 62 and up with large home equity looking for more cash flow. There are a few types of reverse mortgages, but there are also alternatives that might work better for your needs.

7. www.moneygeek.com › mortgage › reverseWhat Is a Reverse Mortgage, and Is It Right for You? - MoneyGeek

   www.moneygeek.com › mortgage › reverse

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   Nov 17, 2023 · A reverse mortgage is a specialized loan that converts a portion of your home's equity into cash. It stands in contrast to a traditional mortgage where you borrow money upfront to buy a house and then repay the lender in monthly installments.