A reverse mortgage is a type of loan that allows homeowners aged 62 or older to access the equity in their home without having to sell their home or make monthly mortgage payments. In this article, we'll discuss what a reverse mortgage is and how it works.
How Does a Reverse Mortgage Work?
With a reverse mortgage, the lender pays the homeowner a portion of the equity in their home in a lump sum or as a line of credit. The loan does not have to be repaid until the homeowner passes away, sells the home, or moves out permanently. Interest accrues on the loan and is added to the loan balance each month.
Qualifications for a Reverse Mortgage
To qualify for a reverse mortgage, the homeowner must be 62 years of age or older and own their home outright or have a low mortgage balance. The home must also be the homeowner's primary residence.
Conclusion:
A no doc mortgage can be a useful tool for homeowners aged 62 or older who want to access the equity in their home without having to sell their home or make monthly mortgage payments. However, it's important to understand the qualifications and how the loan works before deciding if it's the right option for you.
