A reverse mortgage is a home mortgage loan designed to convert the equity in your home into available cash. While most mortgages require you to make a payment, a reverse mortgage makes payments to you! The greatest benefit of a reverse mortgage is that there are no payments due as long as you live in your home. Reverse mortgages are different than a typical home loan in the following ways:
- Your income is not a factor in being approved
- There are no monthly payments due
- It raises your monthly income
- You are protected against ever owing more than your home is worth
- You can never loose your home as long as you maintain the property and keep the taxes/insurance paid
In order to be approved for a reverse mortgage you must be 62 years or older and have equity in your home. If you fit this profile, you should consider a reverse mortgage to accommodate retirement rather then downsizing or renting. In addition, you could use the money from your reverse mortgage however you want!