When you take a reverse mortgage, you will receive money for using the equity in your home. You can use the money as you please, including paying off debts, funding home repairs or remodeling, paying for college education of your children, and so on. The cash from your reverse mortgage payments will be paid to you in installments, and you may choose to receive the money in full or in a smaller amount over time.
There is a limit on how much you can receive every year, usually set at about 80% of the total value of your home. You will have to pay taxes on the amount that you receive and you might also need to pay government fees if you received from the reverse mortgage as a loan. Your heirs will also need to pay tax on the amount of money they receive from your estate.
If you decide to sell your home before the remaining amount on your reverse mortgage bookings are paid, you may not be able to get back the full amount that you need. Depending on the type of reverse mortgage brokings you received, there are different ways to get out from underneath the loan. Some reverse mortgage company Brookings OR allow you to sell the house quickly for less than what you owe on it. There are other types of reverse mortgage bookings where you will need to wait until the remaining loan is paid off.
As with any investment, you should carefully consider the pros and cons of getting a reverse mortgage. It is a good idea to consult with a financial advisor if you are thinking about taking this route. They can give you a good idea of whether or not it is a good option for your particular situation. Before making a decision, you should make sure that you understand all the details and that you meet all the requirements of the lender. Although a reverse mortgage can be a great financial tool, you need to think carefully about whether or not it is the right choice for you.