What is a reverse mortgage?

A reverse mortgage is a type of loan available to seniors in North Carolina (over the age of 62) that enables them to turn the equity in their home into cash without having to sell it or make monthly payments. With a reverse mortgage, the homeowner is allowed to receive a lump sum, a monthly payment, or a line of credit depending on the type of loan. The bank then pays the homeowner until the loan is due, which is when the homeowner moves out, sells the home, defaults on taxes or insurance, or passes away. Any remaining equity belongs to the homeowner’s estate. If the total loan amount exceeds the home value, the homeowner or the estate is not responsible for the difference. Reverse mortgages are a great way for seniors to supplement their income and remain in their homes longer. This type of loan can help the elderly pay for medical care, home improvements, or everyday bills. Before taking out a reverse mortgage, it is important to understand the terms and conditions of the loan and make sure that it is the best decision for your finances.

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