by Breidi Caparatta

Created on: December 07, 2008

Have you heard your friends talking about a reverse mortgage but were not quite sure exactly what a reverse mortgage was? Here you will learn step by step exactly what a reverse mortgage is.

To qualify for a reverse mortgage you must be at least 62 years old and own your own home or owe little on your home. You are able to retain full ownership as well as control over your home if you decide a reverse mortgage is right for you.

All reverse mortgages are tax free. You can receive income, and defer payments on your mortgage as long as you remain living in your home.

On a reverse mortgage, there is absolutely no liability to you or your heirs. The value of your home is the only thing a reverse mortgage lender may look at in repayment of your loan. The home owners as well as the lender are insured in case of loss.

With a reverse mortgage you retain ownership of your home and can never be forced to leave. The reverse mortgage does not have to be repaid until you are permanently gone from your home.

What is a Reverse Mortgage

Reverse mortgages were designed to better the quality of life for seniors. The cash obtained from a reverse mortgage can be used for a variety of purposes. You can use the funds however you see fit.

With a reverse mortgage, you do not have to repay the loan as long as you live in your home. There are no monthly payments, and the loan can be designed a number of different ways.

Some examples of the different reverse mortgages are as follows. You receive a lump sum of money, all at once, for any purpose you choose. You may also choose to obtain a line-of-credit. This gives you the opportunity to decide exactly how much of your equity you want to use, as well as when you want to use it. Receiving a monthly sum of money for life or for whatever period of time you choose is another type of reverse mortgage. Any combination of the mentioned loans may be available to you should you decide to go with a reverse mortgage.

There are limitless possibilities with obtaining a reverse mortgage. With all of life's little surprises, you never know when you may need some extra money. You are able to use the monies from a reverse mortgage in whatever ways suit your needs. To pay bills, pay off debts, or deal with emergencies are just a few options. If going on vacation has always been one of your dreams, you can make your dream a reality. The funds from a reverse mortgage can be used to plan your dream vacation.

How Does a Reverse Mortgage Work?

A reverse mortgage is

• 1
• 2
• Next Page >>