Create a Lifetime Tax-Free Cash Flow with a Reverse Mortgage

A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), can be a great way to create a lifetime income stream. It allows you to borrow against the equity in your home, and you don’t have to pay back the loan until you move, sell your home, or pass away. There are a few things to keep in mind when considering a reverse mortgage.  They can be a great option for senior citizens who want to stay in their homes and have access to a lifetime tax-free cash flow.

When selecting the type of reverse mortgage you can choose to receive an upfront cash payment, monthly cash payments or a line of credit to be be accessed at a later time.   The monthly cash payments are independent of the home’s value.  The value of your home can decline, but the terms of the reverse mortgage will not.  Furthermore, the unused portion of the line of credit grows over time.  Reverse mortgages are backed by the Federal Housing Administration and are completely insured which means they are a Non-Recourse Loan.  If the home is worth less than the mortgage at the time of your disposition of the property, you will not owe any additional funds.

Unlike a Home Equity Line of Credit, which is a fixed amount, can be revoked by the bank, and must be paid back; a reverse mortgage payments can be deferred or you can pay it off early, there is never a pre-payment penalty.   Most people don’t realize this fact, you can pay off a reverse mortgage and the unused portion and the amounts you previously paid back can be accessed again later in life.

If you’d like to learn more about reveres mortgages, contact us today and visit our reverse mortgage page for additional information.  https://www.5280loans.com/reverse/

Email: info@5280loans.com

Phone: 833.5280.LOANS