HUD Reverse Mortgage
Monday, August 1st, 2011A reverse mortgage might be worth considering if you need cash but don’t want to make a traditional repayment.
Unlike a conventional mortgage, a reverse mortgage allows you to covert a portion of the equity in your home into cash. The lender doesn’t require any repayment until the borrower no longer uses the home as their principal residence or dies.
When you take out a regular mortgage, you make monthly payments to the lender over the term of the mortgage. In a reverse mortgage, you receive money from the lender, and don’t have to pay it back for as long as you live in the house or apartment. The loan is usually repaid when you die, sell it, or when it is no longer your primary residence.
HUD reverse mortgages are not taxable. You retain the title to your home. When you opt for a reverse mortgage as a cash injection option, you might shop around for the best deal among different lenders.