What is a Reverse Mortgage

A "reverse" mortgage is a loan against your home from the mortgage bank, that you do not have to pay back for as long as you live there.  With a reverse mortgage, you can turn the value of your home equity into cash without having to move or repay a loan each month.

The cash you get from the reverse mortgage can be paid to you in several ways:

• Lump sum of cash
• Regular monthly payment for the remainder of your lives
• A credit line that you can draw on as needed
• A combination of all of these

No matter how the loan is paid out to you, you typically do not have to pay back the loan until you die, sell your home or permanently move out.

To be eligible, you must be at least 62 years or older and own your own home.