Reverse Mortgage
What is Reverse Mortgage?
A reverse mortgage is a financial product designed for homeowners who are aged 62 or older (with some exceptions starting at 55) to convert a portion of their home's equity into cash. Unlike traditional mortgages where borrowers make monthly payments to the lender, a reverse mortgage allows homeowners to receive payments from the lender based on the equity they have built up in their home and to never have to make a mortgage payment.
Who Is Eligible for Reverse Mortgage?
1
Eligible for anyone who meets the age and health requirements set by the insurance company can be eligible for a whole life insurance policy and participate in the Infinite Banking strategy. The specific eligibility criteria may vary between insurance providers.
2
In addition to meeting the age and health requirements, eligibility for a whole life insurance policy and participation in the Infinite Banking strategy may also depend on the applicant's financial standing and goals.
Features
Access to Home Equity
Whole life insurance policies used in Infinite Banking have a cash value component that grows over time. A portion of your premium payments is allocated towards this cash value, which earns interest and dividends.
Payment Options
Homeowners have flexibility in how they receive the payments from a reverse mortgage. They can choose to receive a lump sum, a line of credit, fixed monthly payments, or a combination of these options. The chosen payment method should align with the homeowner's financial needs and goals.
Homeownership Retained
With a reverse mortgage, homeowners retain ownership of their home and can continue to live in it as long as they meet the loan requirements, such as maintaining the property and paying property taxes and insurance.
