How do Reverse Mortgages Work? When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you.
A reverse mortgage is a mortgage loan, usually secured over a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.
Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender.
What is a Reverse Mortgage? A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) 1 and allow homeowners to convert their home equity into cash with no monthly mortgage payments. 2
NRMLA Calculator Disclosure. Please note: This reversemortgage.org calculator is provided for illustrative purposes only. It is intended to give users a general idea of approximate costs, fees and available loan proceeds under the FHA Home Equity Conversion Mortgage (HECM) program.
Accurate, Up to Date, Reverse Mortgage Information & Answers from ARLO™ We know that while researching what is a reverse mortgage, one can quickly encounter inaccurate and misleading information from the media and other sources.
Reverse Mortgage Spotlight Reverse Mortgages Now Harder to Get If you’ve thought about taking a reverse mortgage, be aware that new rules might make it harder for you to qualify
Reverse mortgages may allow seniors to experience less financial anxiety by providing an extra source of funds. Some common uses for reverse mortgage funds include supplementing retirement savings, covering medical expenses, and setting up a line of credit that grows over time. 6 Some seniors even choose to use the loan to purchase a new home.
The AARP Foundation publication Reverse Mortgage Loans: Borrowing Against Your Home is an an easy-to-understand guide for older adults who are considering such a mortgage refinance for their home (PDF).
A reverse mortgage is a loan for senior homeowners that allows borrowers to access a portion of the home’s equity and uses the home as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. 1 At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the ...