February 27, 2017

You're never too old for a reverse mortgage

By Marcie Geffner - Bankrate.com

The minimum age for homeowners to take out a reverse mortgage loan is 62. But what about the maximum age? Is anyone ever too old for this type of home loan?

Formally called home equity conversion mortgages, or HECMs, reverse mortgage loans allow borrowers to tap the equity in their home. No payments are required until the borrower sells the home, moves out for 12 months or longer, or dies. Then, the loan becomes due in full.

Common motivations to get a reverse mortgage include wanting to stretch retirement income or needing money for medical treatment or in-home care.

"People's retirement portfolios aren't as large, generally speaking, as they were in the previous generation and/or people have higher expectations for their retirement income than they did previously," says Rick Wills, branch manager at Open Mortgage in Silver Spring, Maryland.

A reverse mortgage loan "can be a means to supplement their retirement portfolio," he says.

Read more:
http://www.bankrate.com/finance/mortgages/are-you-ever-too-old-for-reverse-mortgage.aspx