A reverse mortgage is a home loan that homeowners at least 62 years of age can obtain to access the equity in their home.
Reverse mortgages are called such because you borrow money from a lender and the lender makes monthly payments to you, rather than making monthly payments to the lender. A lump sum option is available as well. All interest is paid at the end of the loan, rather than at the beginning.
- Strengthen your personal and financial independence
- Help pay for healthcare or other needs
- You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments, and any homeowner's association dues
- The loan is only paid or required to be paid when the house is sold by you or your heirs, or all applicants move out of the house
- A reverse mortgage does not affect your Medicare or Social Security benefits