Reverse mortgages turn home equity into money Homeowner must be at least 62 to qualify

Mailbag

June 23, 1996|By Michael Gisriel

Dear Mr. Gisriel: I am interested in any information that I can get on reverse mortgages, including if I qualify, who offers them locally and how I can get in touch with them.

Ray Wilson

Clarksville

Dear Mr. Wilson: A reverse mortgage is a type of home equity loan, where the homeowner can turn equity in the home into money.

The homeowner can receive the money in various forms; regular monthly payments (as long as you live in the house), a line of credit, or a lump sum (some of which can be used to pay off existing mortgage debt).

To qualify for a reverse mortgage, you must be at least 62 years old, occupy the house as your principal residence, and own the house free and clear.

If there is a small mortgage balance or property lien, the reverse mortgage proceeds must be enough to pay them off.

Locally, reverse mortgages are offered by Unity Mortgage Corp. in Columbia (410) 381-4890; or you can call the American Association of Retired Persons (AARP) at (202) 434-2277, or write the National Center for Home Equity Conversion at 7373 147th Street West, Apple Valley, Minn. 55124.

Pub Date: 6/23/96

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