The Mortgage That Pays You

A reverse mortgage is a mortgage that pays you, instead of the other way around.

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A mortgage is probably the biggest bill a homeowner faces. But there are some who look forward to a mortgage, because it pays them rather than costs them.

“When the bill comes every month, the mortgage payment, I’ll say to my wife, ‘Uh oh, here comes our mortgage payment in the mail,’ and we look at it and we laugh.”
-Stanley Akselrad, Reverse Mortgage Borrower

That’s the joy of a reverse mortgage. Seniors 62 or over can put up their house for collateral, and borrow money. Which they get either in a lump sum or in monthly payments. And the loan’s not repaid until they leave the home.

“With the help of a reverse mortgage, I’m doing very well financially. I mean, I can travel, I can do anything I want, financially and it doesn’t hurt me one bit.”
-Al Giallorenzi, Reverse Mortgage Borrower

And reverse mortgages are about to get more popular. Because now there’s a program that allows seniors to use reverse mortgages to buy a house.

The reverse mortgage for purchase program allows seniors to buy a house by making a substantial down payment, then funding the rest of the cost with a reverse mortgage. Result? No mortgage payment. Perfect for seniors who’d like to downsize or move to a sunnier clime.

But reverse mortgages aren’t for everyone. Fees are high, and when that senior moves on, unless the loan is paid back, the house gets sold to repay the lender. Still, some people love em.

“They’ll eventually get their money, but this wonderful program for people 62 and over… they don’t have to pay it back while they’re living!”
-Stanley Akselrad, Reverse Mortgage Borrower

You can’t get a reverse mortgage without receiving counseling first. So if you’re interested for yourself or someone you love, look into it.

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