Senior Equity Lines of Credit a/k/a Reverse Mortgages

There's a lot to be said here and I like to try to keep it as simple as possible, "A Reverse Mortgage is really just a Home Equity Line of Credit.

Unlike a traditional Line of Credit when you go to the bank to pull out equity and pay it back every month with a Reverse Mortgage the equity built up in your house pays you and gets repaid when you either sell or pass away.

Now we can go further to say that it is backed by the federal government to help those over the age of 62 tap into trapped equity to help them remain in their homes without having to sell and move.  That's one way that a Senior Equity Line of Credit can help; there are several other ways. 

Let's move onto what a Reverse Mortgage IS and IS NOT. 

This Equity line of credit is available to you if you are 62 or older and you own your home (it does not have to be owned outright)!  The older you are - that's right this is the only time that your age is going to work for you and not against you, go figure, the more equity you can tap into.

It IS backed by the Federal Government (meaning that if the bank that holds your loan goes under your loan does not get called in), so long as you pay your property taxes and pay your homeowners insurance and live in the property for at least 6 months and one day out of the year you are fine.

It will not affect your social security benefits

You will NEVER have to give up title to your home or pay tax on the money that you receive from the line of credit as it's not considered income (it's YOUR equity)

There are no retrictions on how the money is spent

You will never owe more on the house than what the house is worth - this is a non-recourse loan (meaning that you are not liable for any defiency that may occurr the government is)

You will never have to move or make any monthly mortgage payment for as long as you live unless you so choose to.

Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income,  want to help offset medical health care costs, in-home health care, want to pay off an exisitng mortgage, buy a second home, the list goes on, there really are so many reasons why someone should take a look at a Senior Equity Line of Credit it really shouldn't be view as a program for those that have no other option. Interest rates can be fixed or adjustable.