Reverse Mortgage Loan Blog

Rising gas and food costs, banks in trouble and record foreclosure rates. Many people are facing hard economic times, including older people on a fixed income.

“A reverse mortgage might be a way for you to not struggle anymore,” says Norma McCarty, a counselor for Consumer Credit Counseling Service of Greater San Antonio. “To use the value of your home to live a nice, comfortable life.”

Consumer credit counseling services says it’s helped many people over the age of 62 get a reverse mortgage.

A homeowner with a reverse mortgage doesn’t pay the loan as long as they live in the house. The money can help them pay for other things, like medical care, utilities and groceries.

“They’re basically sitting on some funds that they can use,” adds McCarty. “They can use the value of that home that they have. That they worked so hard to pay off. They can now use it and make their lives a whole lot better.”

Once the homeowner dies, it is up to family members to pay back the loan. That means the house may have to go up for sale.

The most important thing? Be sure to talk to a professional financial counselor before signing up for a reverse mortgage.

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