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What is a Reverse Mortgage?
A reverse mortgage is a loan
specially designed for senior homeowners. It allows the owners 62 or
older to convert a portion of their
home equity into cash freeing up resources to plan for, maintain,
or enhance their retirement lifestyle.
How do you qualify for a reverse mortgage?
- Eligible home types: single family detached, condo, town home, PUD, 1-4 rental unit, if one unit is owner occupied.
- Any existing mortgage loans must be paid off. You can
use your reverse mortgage proceeds to do so.
How safe are reverse mortgages?
- A number of protections make them extremely safe.
- You receive mandatory government-sponsored counseling.
- There are caps on interest rates.
- Non-recourse loan.
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