Picking the parts of the package

More Articles:

*What’s 100% financing?
*Is a Closed-End Second Mortgage for me?
*What’s a Reverse Mortgage?
*What’s the difference between a temporary buydown and a permanent buydown?
*Does the government sell FHA mortgages?
*How do I make Interest Only work for me?

IWhat’s a Reverse Mortgage?

A reverse mortgage is exactly what it sounds like: a home mortgage where the lender pays you. It allows people age 62 and older to stay in their home while taking out some accumulated equity without selling. You can choose to get the tax-free payout monthly, in a lump sum, or as a line of credit to tap into when needed (the latter being the favored choice among retirees using this vehicle). You should always consult you tax adviser concerning the taxability of reverse mortgage payouts.