A reverse mortgage is a home loan that homeowners at least 62 years of age with substantial equity in their home can obtain to access their equity in the form of payments from the lender.
Reverse mortgages are called such because you borrow money from a lender, with your home as collateral, and the lender makes monthly payments to you, rather than you 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’t lose your home in foreclosure as long as you maintain the property tax and insurance payments, pay any homeowner’s association dues, and meet property condition and occupancy requirements
- 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