In the News – The Three Basics of Reverse Mortgage
In the News – The New* Reverse Mortgage Loans
In the article The New* Reverse Mortgage Loans, Fairway, Independent Mortgage Corporation explains the basics benefits that a reverse mortgage loan can have for you, your family and the heirs of your estate. What are reverse mortgages and why would I want one?
You have put money and time into paying for your home and now is the time to reap the benefits. Reverse mortgages take a portion of your home equity and put money in your hands that wouldn’t normally be readily available. Reverse mortgages have the capability to get rid of your mortgage payment all together. The money you get from your home equity through a reverse home mortgage might even be tax-free! Did you know all mortgages require a principal interest payment except reverse mortgages?
The taxes, insurance and maintenance of your home are required to be paid. However, if you choose to use your reverse mortgage as a line of credit, receive monthly draws, or get a lump sum, no payments are required to be made while you live in the home and meet all other loan terms. Of course, you do have the ability to make payments toward your line of credit if you would like. These payments toward your credit may affect your line of credit by allowing for more funds to be available to you. This is applicable until the last borrower moves out or passes away and every loan term is met. Worried about paying more than what your home is worth?
In most cases if you permanently move from your home either by selling it or passing away, you and your estate’s heirs are not responsible for paying the deficit if the amount owed on your reverse home mortgage is more than the value of your home. Every situation is different and it is important to contact your tax advisor to ensure your situation is handled correctly due to various situations.
Protect yourself and your estate heirs with the backing of one of Chicagoland’s trusted real estate lawyers. Contact
the professionals at Pankau Law today for more information.
*New represents when the Life Expectancy Set Aside (LESA) was put in place in 2015.
This content of this blog is intended for informational purposes only. It is not intended to solicit business or to provide legal advice. Laws differ by jurisdiction, and the information on this blog may not apply to every reader. You should not take, or refrain from taking, any legal action based upon the information contained on this blog without first seeking professional counsel.