Reverse Mortgages

Reverse mortgages have existed for years now, but are often misunderstood.
A reverse mortgage is still a loan, but is not paid back until the last owner/co-owner dies, or the home is sold or left unoccupied for one year. You may receive an equity line of credit, borrowing money as needed, or receive monthly checks for the rest of your life, like an annuity.

While the loan amount is based on your age(62 and over) and your home’s value, lenders don’t loan the full value of your home. A reverse mortgage provides a low-risk option that allows seniors to remain in their home for the rest of their lives, however, other investments should be depleted before giving it consideration. Your home’s equity should be tapped as a last resource.

When the loan becomes due, the home is sold and you (or your heirs) would receive any money left over. If the house sells for less than the loan amount, the lender eats the loss. Again, this is a great option for many, but not all qualified borrowers. Give it thorough investigation.