Reverse Mortgages

Reverse mortgages (also called home equity conversion loans) enable senior homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you have a choice of receiving a lump sum, a monthly payment, a line of credit or a combination of any of these. Repayment is not necessary until you sell the property, move or pass away. When you sell your home or no longer use it as your primary residence, you or your estate then repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender. At no time will you ever owe more than your home is worth.

Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence. A reverse mortgage is only a mortgage and not a deed. A common misconception of reverse mortgages is that you deed your home to the lender, which is untrue. You will still own your home and can live there as long as you are able-even if you live to be 120 years old.