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Reverse Mortgage

A Reverse Mortgage (or lifetime mortgage) is a loan that enables elderly homeowners to use the equity in their home without selling or moving from it. As opposed to traditional mortgages, where you are repaying the lender, the homeowners use the equity they have built up in their home to receive payments from a lender. These payments, which are really a loan against the value of a home, provide a steady income stream for the homeowners, who must meet certain age and other qualifications. A homeowner’s obligation to repay the loan is deferred until he or she dies or leaves (e.g., goes into a care facility), or the home is sold.

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