What is a reverse mortgage?

1.         A reverse mortgage is a LOAN

2.         It is available to seniors age 62 or older.

3.         It is used to release the home equity in your house as one lump sum or multiple payments.

4.         The loan doesn’t have to be paid back unless

*           the owner dies

*           the home is sold

*           the owner leaves and moves somewhere else
            (e.g., into a senior facility).
 

What is the difference between a Reverse Mortgage and a Home Loan?

Regular Home Mortgage Loan

1.           You make  a monthly payment 

2.           After each payment the equity in your home increases 

3.           After the mortgage is paid in full the property belongs to
              you free & clear

Reverse Mortgage Loan

1.           You do not make any monthly mortgage payments
              for as long as you stay in the home

2.           If you receive monthly payments, the amount of your loan
              gets bigger

3.           Interest is ADDED to the amount of the loan each month

 

Who can get a reverse mortgage?

1.         You must be at least 62 years of age.

2.         There are no minimum income or credit requirements.

3.         You must first seek free financial counseling
from a source that is approved by the Department of Housing and Urban Development (HUD). to make sure
you completely understand what a reverse mortgage is.