A reverse mortgage (also referred to as a home equity conversion mortgage) is a government insured loan that enables homeowners 62 or older to turn the value of their home into tax-free income without the burden of a mortgage payment.the reverse mortgage.  Here are some facts about Reverse Mortgages:

FACT #1: Reverse mortgages are not only for those who are “house rich, cash poor.” Homeowners from all walks of life are taking advantage of this excellent financial planning tool to enhance their retirement years. Reverse mortgages are growing in popularity because of the benefits it offers to homeowners in wide ranges of financial circumstances.

FACT #2: A senior’s home doesn’t have to be debt-free in order for them to get a reverse mortgage!  Even seniors with an outstanding first mortgage or other debt on their home may qualify.  The proceeds of the reverse mortgage, though, must first be used to pay off such debts.

FACT #3: The bank does NOT own the home after the homeowner gets a reverse mortgage. They own their home and retain title throughout the life of the reverse mortgage. Once they permanently move out of their home, or pass it to their estate, the loan must be repaid.

FACT #4: When a reverse mortgage comes due, the bank does not sell the home. When the loan must be repaid, the homeowner or their heirs can either pay the balance due on the reverse mortgage and keep the home, or sell the home and use the proceeds to pay off

Click here for more information on a reverse mortgage (HECM).

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