| There are so many different kinds of loans that it can | | | | house, you don't have to worry about paying it back. If |
| be very hard to keep track of them all. Even with | | | | you do sell your house, the portion that you received |
| mortgage loans, there are so many different kinds. | | | | from reverse mortgage loans will be taken out of the |
| Take reverse mortgage loans, for instance. Most | | | | money you get from the sale. |
| people don't even know that they exist. If they need | | | | Not everyone can reap the benefits of reverse |
| extra money, they get a second mortgage or a home | | | | mortgage loans, though. Since this is a federal type of |
| equity loan instead. While these are valid options, they | | | | loan, they have very strict rules. For one, you need to |
| do provide more of a risk. Well, reverse mortgage | | | | be living in this house. It should be your main residence. |
| loans are similar because they use your existing equity | | | | It can also be either a single family home, or up to a |
| to give you money. However, they are actually much | | | | four family residence. Finally, there is an age |
| better than what you would get with those other loans. | | | | requirement. You need to be at least 62 years old in |
| Reverse mortgages work a little differently. Instead of | | | | order to get one of these loans. These are the main |
| giving you a new loan like a second mortgage or a | | | | rules regarding reverse mortgages. If you feel that you |
| home equity would do, it really just gives you cash on | | | | may qualify, it wouldn't hurt to give it a try. These loans |
| the equity that you've built up on your home. Equity is | | | | are really much better than home equity or second |
| the amount your home is worth beyond what you | | | | mortgage loans. |
| already owe. For instance, if you have a house that is | | | | There are many benefits to reverse mortgages that |
| worth $150,000 and you still owe $100,000 on the | | | | you don't get with the other loans. These are |
| original loan, that means you have built up $50,000 in | | | | especially helpful if you plan to live in your house for an |
| equity. | | | | extended period of time, because you won't have to |
| The big difference between reverse mortgage loans | | | | pay it off until you plan to move. This is one of the |
| and other, similar loans is the repayment. With this | | | | best mortgage loans out there and worth the trouble in |
| federal loan, you don't have to repay it until you no | | | | order to receive it. |
| longer live in that house. If you continue living in the | | | | |