Reverse Mortgages

Reverse mortgages allow older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills. To be eligible for most reverse mortgages, you must own your home and be 62. The cash you get from a reverse mortgage can be paid to you in a number of ways: all at once, in a single lump sum of cash; as a regular monthly cash advance; as a creditline account that lets you decide when and how much of your available cash is paid to you; or as a combination of these payment methods. Three basic types of reverse mortgage are: single-purpose reverse mortgages, federally-insured reverse mortgages, and proprietary reverse mortgages. If you are considering a reverse mortgage, shop around to compare your options and the offered terms. Learn as much as you can about reverse mortgages before you talk to a counselor or lender.