It doesn't basically you receive your money based on the fact that you own your home and there are absolutely no liens. Secondly only a portion is given to you based on value and other liquidable assets, when you and or spouse have passed on the money is taken right off before anyone else could receive from your will
a reverse equity mortgage usually refers to a reverse mortgage, also referred to as a HECM loan. (Home Equity Conversion Loan). The key difference between a regular mortgage and a reverse mortgage is that no monthly mortgage payments are due on a reverse mortgage. A reverse mortgage also does not have credit or income requirements because there are no payments due. Qualification is based on age- minimum age 62- the value of the home and its location.
Ken Scholen has written: 'Your new retirement nest egg' -- subject(s): Mortgage loans, Reverse, Retirement income, Reverse Mortgage loans 'Home-made money' -- subject(s): Home equity conversion 'Retirement income on the house' -- subject(s): Reverse Mortgage loans, Retirement income
The meaning of reverse mortgage (lifetime mortgage) is when a senior citizen who owns a home wants to convert the equity in their home to monthly income or some sort of line or credit.
A reverse mortgage is an instrument that uses the equity in a senior citizen's house to provide him or her with income. Once the homeowner dies, the lender gets the house.
A good thing about reverse mortgage is that it does not have to have any income to qualify. Like the regular mortgage, it doesn't have any monthly loan payments. When your property gets sold, your mortgage will get paid off without any risk.
If you do a reverse mortgage you should be able to refinance your home and have lower monthly payments that way you can have more money for the rest of your bills!
No they don't. There is no income or credit qualifications other than federal delinquencies. (student loans, federal tax liens etc) We have even stopped foreclosure with a reverse mortgage.
No, the money is considered borrowed funds, so no income tax is due on the funds. Liberty-ReverseMortgage.com specializes in Reverse Mortgage Loans. If you are looking for any How Reverse Mortgage works, its pros and cons or guidelines, call (888) 202-4479
Investopedia advises that the principal, interest, taxes and insurance should not exceed 28% of your gross income.
{| |- | A reverse mortgage provides unique benefits for its target market: someone over 62 who lives in his/her primary residence, who has substantial equity in his/her home, and who has little or no income. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home. |}
If your income comes from other than a salary (i.e, commisions, alimony, child support, trust, etc.) you can use the no income no asset (NINA) procedure Ask your local mortgage company or contact Richard Legare at; richard@alliedhomenet.com for the best rates and lowest fees.
lots of info on my site on this one, but in short the money you get from the reverse mortgage is not subject to income tax because it is borrowed money, not earned money. this is similar to a home equity line of credit taken out against a home, no income tax is paid on the loan. On the flip side, the interest you pay on a mortgage is tax deductible in the year you pay the interest, not necessarily in the year it accrues. Because a reverse mortgage does not require mortgage payments, you typically will not have a mortgage interest deduction on your income taxes. However, if you need a deduction on a particular year you can pay interest payments whenever you want, thus receiving a 1098 interest statement making that money tax deductible.