A reverse mortgage is a home loan available to homeowners 62 and older that relies on your home equity. You or your heirs will repay the reverse mortgage with a future home sale. Using your home equity for dependable monthly payments offers financial advantages as you age. U.S. homeowners borrowed an average claim amount of almost a half-million dollars in 2023. $490,396, slightly lower than the 2022 amount of $498,210, according to the U.S. Department of Housing and Urban Development’s 2023 r...
Enjoy your retirement ; No ongoing fees ; No repayments required ; Redraw option
Paying back a reverse mortgage can be done by selling the home, using savings, obtaining a new mortgage, or giving the lender a deed in lieu of foreclosure.
Pros and cons ; Pros: Money can be used for any purpose · Most are backed by the Federal Housing Administration (FHA) · Interest rates are typically lower than a home equity loan ; Cons: You must be 62 or older to qualify · Erodes equity of home over time · Can be more expensive than a traditional mortgage
Check out how much tax-free cash you could get with Equitable Bank’s reverse mortgage calculator.
however, a bank may charge a reasonable administration fee for preparation of the discharge of mortgage. All reverse mortgages written since September 2012 must have a "No Negative Equity...
Instead of paying the bank monthly to build up equity, as in a traditional mortgage, the bank pays you in a lump sum or installments over time.1 Some reverse mortgages must have a specific...
Reverse mortgages originated in 1961 as a way for a woman to stay in her home after her husband died. In 1989, the FHA launched the first home equity conversion mortgage.
A reverse mortgage can be a good way to access the equity in your home, but you’ll need to... as bank statements, and a certificate showing completion of mandatory counseling.5 Attend a...
Reverse mortgages can be a useful financial tool for seniors, but make sure you fully understand how they work.