Reverse mortgages can be a highly beneficial borrowing tool for seniors when they are used correctly. This infographic provides some basic facts about reverse mortgages, so you can start to learn about this product before you decide to borrow.
What You Should Know About Reverse Mortgages. Qualifying: You need to be at least 62 years old. You need to own your own home. It has to be your primary residence. You need to have accumulated some equity in that home. 3 Types. 1. Single-purpose reverse mortgage • Cheapest you can get • Can only use it for one approved purpose 2. Home Equity Conversion Mortgage (HECM) • Federally insured • Can be used for anything 3. Proprietary reverse mortgage • Not federally insured • Can take out more money than with a HECM. Pros and Cons. • Multiple options for receiving money • Keep government assistance • No more monthly mortgage payments • Protected against falling home prices • Fees • Possibility of default • Less for your heirs • Can’t move without repaying
