Reverse Mortgages For Seniors, Extract Equity From Your Property

A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances, but requires no payments during the term of the loan. Moreover, it doest not require an income or credit qualification. Basically all you need is to own your own home or condominium, and be 62 years of age or older. During the duration of the loan you will not have to make any monthly payments, meaning the balance will grow and equity will get smaller because the interest will accrue to your balance.Now if you decide to move from the property and it is no longer your principal residence, then loan will become due and payable. Other factors that can contribute to this are, the last surviving borrower sells or passes away. A reverse mortgage can used for everyday living expenses, such as home repairs and home improvement; medical bills and prescription drugs; pay-off existing debt; education; travel; long-term health care; retirement and estate tax planning; and other needs you may have. There are advantages and disadvantages of a reverse mortgage. Some advantages include, no qualifying loans, having to make mortgage payments and managing the account, cashing out money upfront. On the other hand you might have to qualify for a loan, slightly higher closing fees and few choices on the terms of the loan. For more details I suggest you consult with a reverse mortgage counselor.