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Robert J. Bruss
Inman News Features
Jun. 19, 2004
Are you a homeowner at least age 62 who could use additional tax-free income or who would like to retire but can't because your Social Security and other income won't be enough? If so, a reverse mortgage might be ideal for you.
A reverse mortgage pays tax-free income to the senior-citizen homeowner.
To qualify, the homeowner must be at least 62. In the case of a couple, both co-owners must be at least 62. If one co-owner spouse is not yet 62, the younger spouse can sign a quitclaim deed to the other spouse, who then becomes eligible for a reverse mortgage.
Reverse mortgages offer four basic payment choices:
• Credit line to be used whenever the homeowner wishes, such as to buy a car.
• Lifetime tenure monthly income.
• Term monthly income, such as for 10 years.
• Upfront lump sum for the mortgage maximum.
• Any combination of the above.
Although the lender does not own title to the residence, it does have a first- mortgage security interest, as with a traditional mortgage. To locate a reverse-mortgage lender, go to reversemortgage.org.
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