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Reverse Mortgage

A reverse mortgage is described as a loan that is provided for owners who are normally at least sixty-two years of age and live in their home. Instead of making monthly payments to a loan company the loan company pays you every month. These mortgages make it possible to repay the loan when the home is sold or when the owners move into a type of retirement home. These types of mortgages do have several benefits. For instance, it is an easy way to turn the equity in your home into cash.

Another benefit would be that the advances made from a reverse loan are not taxable. Most of the time, a reverse mortgage will not affect any type of benefits you may be receiving such as Medicare or Social Security. Another great thing is that during this time you get to keep the title to your home. The downside to this is that the loan does have to be repaid in full if the home is sold or when you move out of the home. It will also have to be paid when the last borrower dies.