Fun Fact about Minnesota: Minnesota's nickname is "The Land of 10,000 Lakes." but it has at least 11,842 lakes of 10 acres or more. If you count the smaller lakes, the number goes up to as many as 15,000. Minnesota has more recreational boats than any other state: one per every six people.
A vehicle for a borrower who has substantial equity in a property to convert that accumulated equity at a cost to cash and additional debt without selling the property and without making payments to the lender. With a typical reverse mortgage, the balance of the loan rises as the borrower receives money from the lender and incurs interest to the outstanding loan balance. Also called a reverse equity mortgage or reverse annuity mortgage. The most popular reverse mortgage program is the HECM.
Be aware, the balance of the loan rises as the borrower receives money from the lender and incurs interest to the outstanding loan balance. Since the borrower is not making any payments, by the time a reverse mortgage becomes due, the borrower may have a high loan balance and little or no, even negative equity. For most reverse mortgages, the amount owed grows and the equity shrinks, which creates a "rising debt, falling equity" scenario.
Seniors can use the equity in their home for any use, including, but not limited to:
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