What is a Reverse Mortgage?
A reverse mortgage, also known as a Home Equity Conversion Mortgage, is a special type of home loan that lets you convert a portion of the equity in your home into cash. The loan requires no monthly payments and you keep ownership of the property. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, you do not have to repay the loan until you no longer use the home as your principal residence or fail to meet the obligations of the mortgage.
A Reverse Mortgage can provide seniors with money to do the things they want and need to do, whether it’s help pay for a grandchild’s college, travel, or make their homes handicapped accessible.