How Reverse Mortgages Work and Who Should Get Them

Today on The Father Show we had Kevin A Guttman who is a mortgage specialist to inform us about Reverse Mortgages. He tells us that there are 3 main reasons for a Reverse Mortgage which are: Eliminate monthly PI payment-remain at home, maintain independence, retain ownership on title. The Access Equity-earns compound interest tax free; proceeds are not taxable; protect portion equity and third, the Purchase Home-double purchasing power; newer home, updated amenities, area you want to live in, no PI mortgage payment. He explains that there are 3 Ways to Access Equity from your home, a Lump Sum, Monthly payments, and having a Line of Credit. 3 Features of a reverse mortgage; Non-recourse loan, Best Interest Rate, and Tax free proceeds. You have 3 Options; Fixed rate, Adjustable rate, Jumbo fixed or adjustable. One of the important things I learned is that you maintain the ownership of the home. With a Reverse Mortgage you could Update home, Consolidate Debt, Give to family, and give to charity. However, one thing you can do with the money is buy an annuity.