- What Is a Reverse Mortgage?
- What's the Difference between a Reverse Mortgage and a Home Equity Loan?
- Who is Eligible for a Reverse Mortgage?
- How Much Can I Borrow?
- What Fees Are Associated with a Reverse Mortgage?
- Are There Different Types of Reverse Mortgages?
- How Do I Access the Money?
- When Is Repayment Due on a Reverse Mortgage?
- What Things Should I Consider?
- What Are the Tax Consequences of a Reverse Mortgage?
With a home equity loan or line of credit, a homeowner must have sufficient income, when compared to debt, to qualify for the loan, and is required to make monthly mortgage payments. Each monthly payment reduces the amount of principal that the borrower owes on the mortgage and increases the equity value in the home.
A reverse mortgage is different in that it is available regardless of current income. Repayments do not have to be made, because the loan is not due as long as the borrower lives in the house as his or her principal residence. With a reverse mortgage, the home is mortgaged to the lender. Each payment received from the lender increases the amount of principal and interest that the borrower owes on the mortgage and reduces the equity value in the home. Like all homeowners, real estate taxes and other conventional payments like utilities, must still be made. However, with a reverse mortgage, a borrower cannot be foreclosed or forced to vacate his or her home because of a missed mortgage payment as with a home equity loan.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Franklin Mint Federal Credit Union and Mint Wealth Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Mint Wealth Advisors, and may also be employees of Franklin Mint Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Franklin Mint Federal Credit Union or Mint Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
| Not NCUA Insuredor Any Other Government Agency | No Credit Union Guarantee | Not Credit Union Deposits | May Lose Value |
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: NJ, PA, NY, DE, AZ, MI, FL, MD, TX, VA, GA, NC.
Financial Learning Center content created by TrueBridge, Inc. The information provided is based upon sources and data believed to be accurate and reliable. The content contained herein is intended for information and illustrative purposes only, should not in any way be construed as a personal recommendation, and should be used in conjunction with individual professional advice.
