Reverse Mortgage Loans

If you’re 62 or older, and your house is free of mortgage or nearly so, you can take out a new mortgage loan with no repayment due until you die or move out.  You remain owner of the property. As you receive the money (monthly, a lump sum or a line of credit) a gradual debt builds up, with interest. It’s not taxable income because it will be paid back.       Nothing wrong with this at all. The main drawback is that you have less to leave your kids.  You don't have to prove any income or credit, as you won't be making any payments. The amount you can borrow is based on your life expectancy and the value of the house.  If you outlive it and start to owe more than the place is worth, neither you nor your estate is ever charged for the shortfall. As for what's my take? It’s great for certain older homeowners.  No one arrangement fits everyone's needs, though. That's why so many different mortgage plans are out there.