What Is A ReverseMortgage?By: Greg Lenz, CEO ReverseInformation LLC
Reverse Mortgage 101Think of a credit card...What if you had a credit card that had a$100,000 limit, but didnt require a monthlypayment or repayment until you passed away?You would be able to pay for things with thecard and the balance would be growing eachmonth because you wouldnt be making apayment and interest would be added.
Reverse Mortgage 101 Continued...Once you passed away your credit cardcompany would want the balance paid off.So your heirs could sell the home in order topay off the balance on the credit card.Any money left over after paying off the cardwould be your heirs inheritance.(Credit Card Balance - Sale Price of Home =Inheritance)
Reverse Mortgage 101 Continued...Does that make sense?With a reverse mortgage you receive moneyfrom the value of your home.The money is provided to you in the form of adeferred payment loan.Repayment of the loan is satisfied through thesale of your asset (home) after you pass away.
Your Heirs OptionsYour heirs will have a decision to make afteryou pass away.1) They can sell the home2) They can refinance out of the reversemortgage and take ownership3) They can sign the property over to the lender
Want To Learn More? If you would like to learn more, request our Free Reverse Mortgage Guide!