Reverse Mortgage

If you're senior looking for a way to supplement your income, a reverse mortgage might be a good option for you.

A reverse mortgage allows you to tap into your home equity to receive money either in a lump sum or monthly payout.

Additionally, you don't have to make payments on a reverse mortgage the way you make payments on a home equity loan.

You might think of a reverse mortgage as a home equity loan, without the payments and check simply a loan that's made based on the equity you have in your home.

What Are The Differences Between A Traditional Mortgage And A Reverse Mortgage?

Income you receive from a reverse mortgage typically isn't taxable because it's a loan advance rather than income.

The IRS publication on reverse mortgage has not yet address whether the mortgage insurance payment or origination fees are tax-deductible.

According to the United States Department of Health and Human Services, The income received from a reverse mortgage won't affect your social security or Medicare benefits as long as you spend the money in the month you receive it.

For that reason, you may consider receiving your reverse mortgage payout in monthly payments or as a line of credit that you can access when you need it.

Unlike other types of loans based on your home's equity, a reverse mortgage doesn't require a check on your credit history and the lender doesn't assess your income level. 4.

The money from the reverse mortgage can be used to pay off existing assets, including a previous mortgage

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