Reverse Mortgage - All About Reverse Mortgages

What is a Reverse Mortgage?

This mortgage pays you. It is the “Reverse” of a typical mortgage.

A reverse mortgage is a very low-interest loan for homeowners age 62 and older. The reverse loan allows the senior to borrow a percentage of the home's value (based on the age of the youngest homeowner).

A Reverse Mortgage is a special type of home loan, designed specifically for seniors. The loan enables homeowners to convert a portion of the equity in their home into tax-free income or cash—without having to sell their home, give up the title, or make monthly mortgage payments.

But, unlike traditional home equity loans or a second mortgage, the money does not have to be paid back until the last surviving homeowner moves out of the property or passes away. At that time, the heirs have 12 months to repay the balance of the reverse mortgage or else sell the home to pay back the lender.

The heirs inherit all the remaining equity. The heirs are also not responsible if the home sells for less than the loan's balance.

Reverse Mortgages (also known as Home Equity Conversion Mortgages or HECM), are increasingly popular in America and other countries in the world.

Many seniors use a Reverse Mortgage to supplement Social Security, meet unexpected medical expenses, make home improvements, or provide security against unexpected events.

It’s important to know what your options are to secure your financial future. The various sections of this website are intended to give you a factual understanding of Reverse Mortgages, how they work—and how they could work for you.

* Plans are not all available in all states

Eligibility Requirements for a Reverse Mortgage

To qualify for a reverse mortgage you must be at least age 62 and have sufficient home equity.

How to Use a Reverse Mortgage to Prevent Foreclosure

Reverse mortgages can be an effective way to protect you as a homeowner from foreclosure. You maybe eligible for a reverse mortgage even if you are bankrupt or at risk for foreclosure.

How much money can I get with a Reverse Mortgage?

The amount you can borrow with a Reverse Mortgage is determined by several things we cover here.

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