Reverse Mortgage

A Reverse Mortgage is a loan that enables older homeowners to convert a portion of their home equity into cash.  It may also provide a way for those with limited income to better manage their retirement finances by allowing them to use accumulated equity to cover living expenses.

As long as you live in the home, you’re not required to make monthly mortgage payments. Instead, the lender makes monthly payments to you. That’s why it’s known as a reverse loan because with a traditional mortgage it’s the other way around, the borrower pays the lender. In this case, the borrower is not required to pay back the reverse loan until the home is sold, vacated, or the owner passes away; and the homeowner still retains ownership of the home. However, you must remain current on property taxes, hazard insurance, homeowner’s association dues, any other applicable fees, and you must be able to maintain the property.