Retirees and Reverse Mortgages
If you are a homeowner age 62 or over, a reverse mortgage may be your key to an easier retirement. This “loan” lets you enjoy the equity you've built in your home without getting a home equity loan or having to sell your home to enjoy the profits. Keep reading to learn more about whether a reverse mortgage is right for you. For more information either send us an email today.
Is It Right for Me?
You are most likely to benefit from a reverse mortgage if:
How Does It Work?
With a Reverse Mortgage, you actually borrow against the value of your home. And, as long as your home remains your principal residence, you can opt not to repay a penny, although you can choose to make payments, if you wish.
When your home is sold, the loan balance plus accrued interest and other costs are due and payable—and usually will be repaid from the proceeds of the sale of your home. Any remaining proceeds belong to you or your heirs. If your loan balance exceeds the value of your home, the proceeds from the sale of your home are all that you will pay. So neither you nor your heirs will be left with a debt, nor can you be forced to sell or vacate your home as long as you choose to stay in it.
Are There Implications to Taxes or Benefits?
Payments received through a reverse mortgage are considered a loan and so are not subject to taxes. In addition, these payments won't affect your Social Security or Medicaid benefits. However, your SSI and Medicaid benefits may be affected if your "liquid assets" exceed a certain level.
Contact a Reverse Mortgage Specialist
RBC Bank specializes in Reverse Mortgages in the two Carolinas, Virginia, Georgia, Alabama and Florida.
Call at 1-800-879-5864 for more information. You can also write to us at:
RBC Bank - Reverse Mortgages