Visio Talk

When it comes to mortgages, most people assume there is little “creativity” in terms of the types of loans that are issued. Well, if that is your belief I have some news for you: there is a unique variant of the traditional home equity loan known as a “reverse mortgage” and it is a very attractive loan for many people. In a nutshell, a reverse mortgage refers to a loan against a home where the lender is not required to be paid back for as long as the borrower is living in the home. This is a unique loan that allows the borrower’s home to amass equity. So, the equity of the home can give the borrower a financial edge of sorts when the time comes to make the payment on the loan as the value of the home will have increased and the equity capital may be put towards paying the loan. Now, there are a number of ways this type of loan is distributed such as lump sums; cash advances on a monthly basis similar to the way credit cards can be used; as a line of credit; or combinations of all three. In order to quality, you must own your own home (of course) and, in many instances, you must be 62 years of age or over. If you do qualify, however, this could prove to be a quite agreeable loan to pay back.

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