With this loan, retirees with limited income can use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care.
The loan is called a reverse mortgage because instead of making monthly repayments to a lender, as with a tradition mortgage, the lender makes payments to the borrower.
The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as the borrower lives in the home, he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowners insurance and condominium fees (if applicable).
Credit One can assist with Reverse Mortgage's with our SEQUAL accredited finance specialists.