The very first reverse mortgage was written in order to help a widow stay in her home despite the loss of her husband’s income. In modern day, reverse mortgages still continue to help individuals stay in their home.
The definition of a reverse mortgage is simply a loan, and over the years it has continued to evolve into one of the safest mortgage products on the market today. Backed by federal insurance, thousands of seniors have already enjoyed the benefits of this financial tool.
Some of the important benefits are:
- You can never owe more than the value of your home
- As long as you reside in your home and comply with the loan terms, you do not have to make payments on the loan
- You not will not lose Social Security or Medicare benefits
- You are afforded greater financial freedom and control, providing you with security and dignity
To qualify for a reverse mortgage, the basic requirements are that you must be 62 years and older, own your home (not necessarily free and clear) and occupy it as your primary residence.