Reverse Mortgage
A reverse mortgage is a loan against a home in which the homeowner does not have to make a payment on the loan as long as they live in the house. In order to qualify for a reverse mortgage, a homeowner generally must be at least 62 years of age. Also, an income is not required to qualify for this type of mortgage. The home must have a very low mortgage balance or be owned free and clear.
The homeowner can receive the loan amount in different ways:
A single lump sum amount
A regular monthly amount
An account that lets the homeowner(s) decide when and how much of the available amount is paid to them
A combination of the above methods
Generally, a reverse mortgage does not need to be paid back until the homeowner dies, sells the home or permanently moves out of the home. There are no monthly payments to be made.
