Reverse Mortgage Information
Reverse Mortgage / Home Equity Conversion Mortgage Information
In a nutshell:
A reverse mortgage (RM) is a loan in which a lender pays you while you continue to live in your home. The payments can be made monthly, or in a lump sum, or in the form of a line of credit. You don't have to pay it back while you still live in your home.
To be eligible for a reverse mortgage, you must own your home. The amount you may borrow is generally based on your age (62 is typical), how much home equity you have, and the loan rate.
As a reverse mortgage borrower, you do not give up title to your home, and the money from an RM can be used for any purpose. However, you are responsible for paying all real estate taxes and maintaining your home.
Top Ten Things To Know If You're Interested In A Reverse Mortgage -- the most frequently asked questions about reverse mortgages. (HUD)
Reverse Mortgages: Cashing in on Home Ownership -- Facts to consider; safeguards; resources; and how to file a complaint about an RM provider. (FTC)
How HUD's Reverse Mortgage Program Works. The latest information is available at HUD's master page of information about Home Equity Conversion Mortgages (HECM), the FHA-insured reverse mortgage program.
HUD's Lender Locator lets you find a HUD-approved Reverse Mortgage lender in your area.
Extensive info on RMs is available at this AARP site.