A Reverse Mortgage is a special type of home equity loan that allows seniors to convert some of the equity in their homes into cash while still retaining home ownership.
Reverse mortgages work much like traditional mortgages with one important exception: instead of you making a mortgage payment each month, the lender pays you.
Unlike conventional home equity loans, most reverse mortgages do not require any repayment of principal, interest, or servicing fees for as long as you live in your home. Funds obtained from these loans may be used for any purpose, including meeting housing expenses such as taxes, insurance, fuel, and maintenance costs.
Are Reverse Mortgages Safe?
FHA and FANNIEMAE guarantee the payments are made to you each and every month.
You can stay in the home as long as you want.
You will never owe more than the house is worth.
Since there is no mortgage payment to make, you cannot lose your home for "missing a payment".
Consumer education is provided by a third party non-profit or public agency.
Reverse mortgages work much like traditional mortgages with one important exception: instead of you making a mortgage payment each month, the lender pays you.
