Reverse mortgages give seniors some extra, tax-free income and, more importantly, allow them to remain in their own homes. At this time, reverse mortgages are not generally available in Grand Island. This is primarily due to the aging of the baby boom generation, they said. Ed Jarosik, mortgage lending manager at Five Points Bank, said reverse mortgages require more from a bank than just announcing the loans are available. Meanwhile the equity in your home increases.
Reverse mortgages work in reverse.
Homeowners past the retirement age borrow the equity out of their homes, with no repayment requirements, for as long as they live in the home. In a reverse mortgage, you are reversing the deal you made when you bought your home. Previously, you had income and wanted equity. Now you have equity and want income. With a reverse mortgage, you don't have to make monthly payments.