What is a reverse mortgage?

A reverse mortgage is a special home loan available to seniors age 62 and over. It allows you to turn the equity you have in your home into cash, and typically does not have to be repaid until you die, sell your home, or move out. You can get the money in a single lump sum, as a regular monthly cash advance, or as a line of credit that you draw as needed. In the end the loan is paid off with the proceeds of the sale of the house. If the house sells for more than the loan amount, the owner of the house, or his or her heirs, gets the difference.  more

Reverse mortgages - a special type of home loan - are becoming popular in Americ They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more. Borrowers must be at least 62 years old and occupy as their principal residence a home that has little or no mortgage debt remaining. The maximum loan amount depends on the age of the borrower, the expected interest rate and the appraised value of the property. There are many payment options available. For example, borrowers may receive monthly payments for a fixed period they select, or as long as they occupy the home as a principal residence. Reverse mortgage need not be repaid until the borrower moves, sells or refinances the property, or dies. FHA insures the lender against the risk that proceeds from the sale of the property may not be sufficient to pay off the mortgage balance.  more

A. A reverse mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain home ownership. Reverse mortgages work much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays you. Most reverse mortgages do not require any repayment of principal, interest, or servicing fees for as long as you live in your home. Retired people may want to consider the reverse mortgage as a way to generate cash flow. A reverse mortgage allows homeowners age 62 and over to remain in their homes while using their built-up equity for any purpose: to make repairs, keep up with property taxes or simply pay their bills. Understand that reverse mortgages are rising-debt loans. This means that the interest is added to the principal loan balance each month, because it is not paid on a current basis. Therefore, the total amount of interest you owe increases significantly with time as the ...  more

A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income. There are no income or credit qualifications, and there are no monthly payments to make. You still keep title of the home and the loan only becomes due when the last borrower(s) permanently leaves the home. These loans are backed by the U.S Government or major financial institutions.  more

The opposite of a traditional mortgage, a reverse mortgage pays you money, turning your home's equity into cash, a line of credit, monthly income or a combination thereof. Funds are tax-free (consult your financial advisor) and provide a unique source of financial security to give you the freedom and peace of mind to fully enjoy your retirement years. NWFCU has partnered with Credit Union Mortgage Association (CUMA) to offer this loan option to our members. Our Mortgage representatives can put you in touch with a CUMA Advisor who will answer all of your questions and provide counsel to help you decide if this loan is right for you.  more

A reverse mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you continue to own the home. Reverse mortgages operate like traditional mortgages, only in reverse. Rather than paying your lender each month, the lender pays you. Reverse mortgages differ from home equity loans in that most reverse mortgages do not require any repayment of principal, interest, or servicing fees as long as you live in the home. The reverse mortgage's benefit is that it allows homeowners who are age 62 and over to keep living in their homes and to use their equity for whatever purpose they choose. A reverse mortgage might be used to cover the cost of home health care, or to pay off an existing mortgage to stop a foreclosure, or to support children or grandchildren. Note: Reverse mortgages are now available in every state except Alaska, South Dakota and Texas. But willing lenders may still be scarce in some places. When the homeowner dies or ...  more

A reverse mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain home ownership. Reverse mortgages work much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays you. Most reverse mortgages do not require any repayment of principal, interest, or servicing fees for as long as you live in your home. Retired people may want to consider the reverse mortgage as a way to generate cash flow. A reverse mortgage allows homeowners age 62 and over to remain in their homes while using their built-up equity for any purpose: to make repairs, keep up with property taxes or simply pay their bills. Understand that reverse mortgages are rising-debt loans. This means that the interest is added to the principal loan balance each month, because it is not paid on a current basis. Therefore, the total amount of interest you owe increases significantly with time as the ...  more

A. A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income-without having to sell their home, relinquish title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s) permanently leaves the home or passes away. * Consult your Tax Advisor. Not all products available in all states.  more

A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income—without having to sell their home, give up title to it, or make monthly mortgage payments. The loan becomes due when the last borrower (s) permanently leaves the home.  more

A. A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income-without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s) permanently leaves the home.  more