What is a Reverse Mortgage?

  A reverse mortgage is a type of loan that allows homeowners to access some of the equity they have built up in their homes over the years. Unlike a traditional mortgage, which requires the borrower to make regular payments to the lender, a reverse mortgage pays the borrower, typically in the form of monthly payments, a lump sum, or a line of credit.
The borrower must be at least 62 years old and own their home outright or have a low mortgage balance. The loan amount is determined by the value of the home, the borrower's age, and the interest rate. The loan does not have to be repaid until the borrower sells the home, passes away, or no longer uses the home as their primary residence.
While a reverse mortgage can provide a source of income for older homeowners, it's important to consider the fees and interest rates associated with the loan, as well as the potential impact on inheritance and eligibility for government assistance programs. It's recommended to consult with a financial advisor or housing counselor to determine if a reverse mortgage is the right option. 

 Fact: The borrower remains the owner of the home and retains the title, and the bank only has a lien on the property to secure the loan. 

 Fact: Reverse mortgages can be a helpful financial tool for older homeowners who want to access the equity in their homes to supplement their income or pay for expenses. 

 Fact: Borrowers with an existing mortgage may still be eligible for a reverse mortgage as long as they meet the other requirements, including age and equity in the home. 

 Fact: Reverse mortgages are non-recourse loans, which means that the borrower or their heirs are not responsible for paying back more than the value of the home. 

 Fact: As long as the borrower continues to meet the loan requirements, they can remain in their home for as long as they like. 

Fact:  It's important to understand the facts about reverse mortgages and to work with a reputable lender to ensure that you make an informed decision.