What is a Reverse Mortgage ?
A reverse mortgage is used to convert home equity into cash. Payments take the form of a lump sum, line of credit or monthly payments over a specified number of years or over the life of the borrower. The amount being drawn is from the borrower's principal and considered tax-free and will not affect the taxability of Social Security benefits. Generally, the homeowner borrower must be age 65 or older and the residence must be close to being totally paid off. To view a reverse mortgage calculation schedule you can go to: http://www.reverse.org/help.calculator.htm
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