“Look honey, it’s another white haired, aging, former celebrity talking about Reverse Mortgage on the television!”

...This sentence is commonly followed by “Humphf, sounds fishy to me.”

What Is This Thing Called Reverse Mortgage?

Just like the name sounds, a mortgage company makes payments to the owner, over a set schedule. It is the reverse of what the homeowner did to purchase the home originally.

Why Is It Restricted To A Certain Age Range?

Basically, the idea is to assist the elderly with expenses, while allowing them to take out the equity in their home and not have to pay capital gains. The laws and guidelines were set up to most benefit those who do not have multiple other options for income.

Can You Do A Reverse Mortgage If You Still Have A Current Mortgage?

That is a question for a lender. If you have a small balance still due on your mortgage they may be able to work with you on this. It never hurts to ask, you may find a pleasant surprise on the other end.

Pros and Cons

On the plus side, the elderly homeowner does not have to give up their St. Johns County property for monetary reasons if the income from the reverse mortgage is sufficient to alleviate the pinch. This also takes some of the burden off the extended family to either make up the short fall or have to face forcing the family member into selling and moving.

On the down side, if the homeowner out lives the mortgage they may still be moving since the mortgage company now owns the house. There is also the problem of heirs. Some heirs may find it onerous to have to consider the mortgage company in the disposition of a family home when dealing with Jacksonville homes.

Research is the Key

Talk to realtor and local mortgage lenders, get the facts and the information up front. Talk it over with family members who are involved in your life and may be concerned. Make certain you know all there is to know before making the decision to let your ‘home take care of you’.