Home Mortgage Weblog

Nearing retirement? Worried about how to maintain your lifestyle in the coming years? You have worked hard all your life to make the home you own; now let your home work for you, while you enjoy your years of leisure.

There is a great product on the market for you. Your home can actually give you both lump sum money and regular income through a product called ‘The home equity conversion mortgage’. Some of the key requirements to be eligible for this product are that first of all you need to be over 62 years of age. Secondly, you should not have any outstanding mortgage on your home. All taxes and insurance pertaining to your home must also be fully paid up. In this mortgage, instead of you paying the mortgager, the mortgager will pay you. Also, there is no fixed timeframe for the closure of the mortgage.

If the value of your home is say $600,000, you can actually raise a lump sum of $50,000 and get an additional monthly income of $800 every month or even more depending upon the exact value of your home. Moreover, the capital raised through this mode can be used for any legitimate purpose like children’s education, a vacation or purchase of a new property or for daily expenses. After your death, your heirs have the option of either refinancing the debt or selling the property and cashing out on the balance home equity.

To read further on the home equity conversion mortgage, click here.