Ten reasons to consider a reverse mortgage
A reverse mortgage is a non-recourse loan secured by a house. Unlike a conventional mortgage
Hot Topics
- What is the difference between a Guaranteed and Reviewable life insurance policy?
- With a “Guaranteed” policy the Life Company guarantees that it will never increase the premium.....
- Will my life insurance premiums increase over time?
- The answer to this question depends upon whether you have a normal “Guaranteed” policy, a “Guaranteed indexed linked policy” or a “Reviewable” policy.
- Are there any fees or extra costs to pay?
- If you are purchasing life insurance through our product partner, Life Policies Direct, then there will are no fees or other costs to pay
- Complaints about misleading advertising on the Internet
- If you believe that a web site is misleading then you should contact the Advertising Standards Authority.
Reverse mortgages are designed for older homeowners who are "house rich, but cash poor." With a reverse mortgage the homeowner borrows money, but does not have to repay it as long as they live in their house.
Each month interest is added to the principal amount ( personal loans ) of the loan, and when the homeowner moves, they either repay the loan, or the house is sold and the proceeds go to the reverse mortgage lender.
To qualify for a reverse mortgage, the borrower (and their spouse if married) must be 62 years of age or older, and they must own their primary residence, which will serve as security for the loan.
The amount that the borrower can borrow is based on the value of the home, interest rates, and the age of the homeowner. Older homeowners can borrow more than younger homeowners, since it is assumed that the reverse mortgage will be repaid ( life insurance ) sooner.