Reverse Mortgage

What is a reverse mortgage? A reverse mortgage is a way to convert home equity into cash. The loan is paid out in monthly installments, in one lump sum, as a line of credit or a combination of the three. The homeowner maintains ownership and benefits from all appreciation in the home's value during the term of the loan. To qualify, an individual must be 62 years of age or older and own his or her home with little or no mortgage left. The home must be their primary residence. The loan is only repaid when the borrower no longer lives in the home. In the event of death, heirs can choose to repay the loan and keep the house, or sell the house and repay the loan. The amount of money you receive is dependent upon you age, value of your home, current interest rates and the specific plan you choose.