Top 10 Reasons Homeowners Get a Reverse Mortgage

By now, most people know why reverse mortgages got their name: the cash flow is reversed. In a traditional mortgage, the homeowner makes monthly payments to the lender and the equity in the property increases as the mortgage balance decreases. The best feature of a reverse home mortgage is that the senior homeowner (62+) does [...]

Top Reverse Mortgage Questions, Part 2

1. When do I pay back my reverse mortgage loan?
All loan payments are deferred as long as the property remains the borrower’s primary residence. There is no obligation to repay the loan until the owner dies, the home is sold, or the owner otherwise vacates the property for 12 consecutive months (for example, to move into [...]

Reverse Mortgages vs. Home Equity Lines of Credit

There are some similarities between reverse equity mortgages and home equity lines of credit. Both programs use equity in the property to generate cash flow for the homeowner, and both require the homeowner to pay all property taxes and insurance and utility payments.
Another similarity lies in payment options. Reverse mortgages loans offer several disbursement [...]

What is a Reverse Mortgage?

Reverse mortgages are a special type of loan used to “unlock” the equity in older homeowners’ (ages 62+) homes, allowing seniors to cash in on the equity in their homes without conceding any ownership of the property. The tax-free income generated from the equity in the form of a loan is then available to the [...]