You see the term "reverse mortgage" a lot in the media streams.
And have been urged to get one as reverse mortgages sound like the next best things next to sliced bread. But what are they and who needs a reverse mortgage? Can you see anyone in the crowd, are you one who does?
You spend much of your life paying off a mortgage and to be debt free.
And to go in a direcition that sounds backwards, to take on debt once you are free and clear sounds like a bad idea. As you get older but clarification on what exactly is a reverse mortgage.
So how do reverse mortgages work? The money you get usually is tax-free. And here is what else the Federal Trade Commission says about reverse mortgages.
How many kinds or types are there for reverse mortgages? Three exist.
The single purpose reverse mortgages – offered by some state and local government agencies, as well as non-profits. Then there are proprietary reverse mortgages that are private loans. It all gets rounded out when discussing reverse mortgages when talking federally backed, guarantted reverse mortgages. Called Home Equity Conversion Mortgages (HECMs).