Mortgage Buy Down Programs
Mortgage buy down programs, also known as reverse mortgages, can be a good option for people living on a fixed income who need more cash for their current expenses.
A mortgage buy down program allows people who own their homes to take advantage of the equity they have built up over the years to provide themselves with a monthly income. Instead of the home owner paying a monthly mortgage payment, a monthly payment is made to the home owner until the value of the home is depleted.
Of course there is a catch to this process. No one is giving away free money after all. The downside is that the home will become the property of the agency offering the mortgage buy down program. These type of mortgage buy down programs or reverse mortgages will typically contain a clause, however, that prevents the home from being taken while the home owner is still alive. This clause will prevent the home owner from losing the roof over their head.
