A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash.

The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction how reverse mortgage proceeds can be used.

The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.

The borrower is not required to pay back the loan until the home is sold or otherwise vacated.  As long as the borrower lives in the home he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowners insurance and homeowners association dues (if applicable).

Consumer Guides

  Do you and your family have questions about reverse mortgages? Find the answers in three new consumer guides from the National Reverse Mortgage Lenders Association. Reverse Mortgage…

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Advice for Children of Seniors

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An Inside Look

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Features of Reverse Mortgages

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HECM Payment Options

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Reverse Mortgage Calculator

NRMLA Calculator Disclosure Please note: This reversemortgage.org calculator is provided for illustrative purposes only. It is intended to give users a general idea of approximate costs, fees and…

Things to Look Out For

Cautions As with any financial transaction– be it a mortgage, a credit card or even a bank account– there are specific rules and obligations attached to reverse mortgages.…

Two Ways to Tap Your Home Equity

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Types of Reverse Mortgages

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What is a Financial Assessment?

Lenders must conduct “financial assessments” of every reverse mortgage borrower to ensure that person has enough money to pay ongoing costs, such as property taxes and homeowners insurance,…

What Is A Reverse Mortgage

A reverse mortgage is a loan available to people over 62 years of age that enables a borrower to convert part of the equity in their home into…

What is Home Equity?

For many homeowners, the equity they have built up in their home is their largest financial asset, typically comprising more than half of their net worth. Yet confusion…