The Home Equity Conversion Mortgage is a product created by Congress in 2008 to provide some liquidity to the struggling home market. The amount you can borrow depends on age, current interest rates, and the appraised value of your home or FHA’s mortgage limits,whichever is less. Generally, the more valuable your home is, the older you are and the lower the interest, the more you can borrow.
- No payments are necessary as long as the house is your principal residence.
- No need to repay the loan as long as you or one of the borrowers continues to live in the house
- You can never owe more than the value of your home at the time you or your heirs sell the home.
- When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and fees.
- The rest is yours.
The Rules Just Changed
More seniors are turning to reverse mortgages to supplement their retirement savings, which have been decimated by market losses. Continue reading this post