Everything You Should Know About Reverse Mortgages
You’ve Seen Them Advertised on Television – Now Our Loan Expert, Laura Hertz, Explains
By Laura Hertz, Loan Officer, CSMC Mortgage
What is a Reverse Mortgage?
A reverse mortgage is a loan that allows homeowners and homebuyers aged 62 or older to convert some of their home equity into cash or a line of credit. Some reverse mortgage loans also let homeowners finance a new home purchase. With a reverse mortgage, a borrower does not make loan payments and they may continue to live in and own their home. Unlike a home equity loan or home equity line of credit (HELOC), borrowers do not have to repay a reverse mortgage until the home is sold or the last surviving borrower (or a non-borrowing spouse) no longer lives in the home. The homeowners / borrowers; however, must always maintain the condition of the home and always stay current on the property taxes and hazard insurance.