Wenatchee Real Estate: What is a Reverse Mortgage?

Question:  What is a Reverse Mortgage?

Answer:  A "reverse mortgage" is a home loan that allows people 62 years and older to tap into the equity of their home, without making loan payments.   A reverse mortgage provides cash payments to the homeowners, based on the equity value in the home.  Homeowners can defer payments on the loan until they die or sell the home.  Upon the owners death, their heirs either give up ownership to the home or must refinance the home to purchase the title from the reverse mortgage holder.

This option can be very beneficial to senior citizens who own their homes, but are on a limited income and need the income from the equity of their home to make ends meet.   It can be a complicated instrument, so be sure to clearly understand ALL terms and conditions before making a decision.

Please contact me if you have any Wenatchee real estate questions.

Best Regards,
Erin Davison
Wenatchee Real Estate Agent

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