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For the Family
A reverse mortgage could be an ideal way
for your parents to benefit from the wise investment they
made in real estate perhaps decades ago. If you are the son
or daughter of a senior who is age 62 or older, you should
understand the facts about reverse mortgages.
- Get money without moving. A reverse mortgage
can help your parent(s) create a new source of tax-free*
money without having to sell their home. In fact, they can
stay in the home they love for as long as they'd like.
- Financial independence. A reverse mortgage
allows seniors to tap into money they've earned in the form
of home equity, and avoid having to depend on relatives
for financial assistance.
- Keep title to the house. Your parents
retain full title to their home and have no risk of losing
the home to the lender. And no matter what happens to the
housing market, your parents can never owe more than the
value of their home when it is sold.
- Proven safe. Over 150,000 Americans have
already benefited from reverse mortgages. The fact is that
HECM reverse mortgages are government-protected loans and
many safeguards are in place to protect seniors from unethical
lending practices.
- Repayment options. If your last-remaining
parent passes away while living in the home, you, as the
heir(s), simply pay off the reverse mortgage principal plus
accrued interest. If you—or a sibling or other relative—want
to keep the home in the family, you can take out a new traditional
mortgage or use other assets to pay for it. If no one in
the family is interested in keeping the home, it can be
sold to repay the loan. Any money left over goes to the
estate to be shared according to your parents' last wishes.
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