I recently entered into an transaction where my clients are purchasing an home that the seller has taken an “Reverse Mortgage” on. Simply put, for an person 62 or older, this is an way to borrow against the equity in your home. Since you are borrowing a lump sum and not making payments on the loan, your balance continues to go up as opposed to an traditional loan situation where you are paying off the balance as you go.
I found this article which I thought outlined the Pro’s and Cons very well.
Visit houselogic.com for more articles like this.
Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®
Fatal error: Allowed memory size of 67108864 bytes exhausted (tried to allocate 49 bytes) in /home/content/94/11273894/html/wp-includes/wp-db.php on line 1889