A reverse mortgage is a loan designed to convert equity in a home into available cash. While most mortgages require you to make a payment, a reverse mortgage makes payments to you! The greatest benefit of a reverse mortgage is that there are no payments due as long as you live in your home. Reverse mortgages are different than a typical home loan in the following ways:
Your income is not a factor in being approved
There are no monthly payments due
It raises your monthly income
You are protected against ever owing more than your home is worth
You can never loose your home as long as you maintain the property and keep the taxes/insurance paid
In order to be approved for a reverse mortgage you must be 62 years or older and have equity in your home. If you fit this profile, you should consider a reverse mortgage to accommodate retirement rather then downsizing or renting. In addition, you could use the money from your reverse mortgage however you want!
Loan Types