You may not be familiar with the term “reverse mortgage.” A reverse mortgage is a loan that is available to homeowners who are more than 62 years old. This loan allows them to convert a portion of the equity of their houses into cash. This was developed in order to help retirees cover living and health care expenses that they may be unable to pay for due to limited income. However, a reverse mortgage can be used for anything; there are no restrictions on their use. It is called a reverse mortgage because it is the opposite of a traditional mortgage in the sense that instead of the borrower making monthly payments to the lender, the lender is making payments to the borrower. You are not required to pay back a reverse mortgage loan until the home is vacated. The borrower is required to pay property taxes and insurance, however, they are not required to make monthly payments towards the loan.

A reverse mortgagefrom Blue Pearl Mortgage may help you to pay for living expenses. However, there are limitations. As stated above, everyone on the deed of the home must be at least 62 years old. If one spouse is not 62, they must have their name removed from the title. To obtain a reverse mortgage, any existing mortgages must be paid off. Real estate taxes and homeowner’s insurance must stay current, and the home must be properly maintained. The home must also be your primary residence. If you live more than a year outside of your home, you must discuss with your lender.

If you believe a reverse mortgage may be right for you, contact Blue Pearl Mortgage for our reverse mortgage services.