Refinance Home or Reverse Mortgage - Which Way to Go?
Owning a house has its own perks—more space, freedom, flexibility, and autonomy just to name a few. What's another appealing asset? Equity. You can borrow against the equity in your home if you have it. There are a number of options available, including a mortgage refinance leads, a home equity loan, or a home equity line of credit (HELOC). You can also get reverse mortgage leads if you're over the age of 62. But how can you know which choice is right for you? How does a Reverse Mortgage work? A reverse mortgage, unlike a normal mortgage, pays you back using the equity you've built up through years of mortgage payments. Money might be received in the form of a one-time payment, a line of credit, or monthly installments. These mortgages are only offered to seniors over the age of 62 who have a large amount of equity in their home—usually about 50%. Home equity conversion mortgages (HECMs), which are insured by the Federal Housing Administration (FHA), proprietary reverse ...