A reverse mortgage is a loan that enables seniors who owns a home and is 62 years and older, to convert a portion of his/her home equity into tax-free* income.  A reverse mortgage lender pays you with the equity you built over the years while you continue to enjoy living in the comfort of your own home.

How Does Reverse Mortgage Work

Here is a high-level summary of how a reverse mortgage works:

• You are homeowner, 62 years or older, with a small amount of money left pay on your house.  You would like to have more income, but you can't afford to refinance your house and pay the forward mortgage lender monthly payments.· Moving out and selling your home is the last option on your mind.


• You contact a reverse mortgage lender and they determine based on your age, home value, interest rates and where you live, how much money they can give you.·


• You continue to live in your own home and you still own it, not the lender.  The only change is that you will receive payments from the bank to use on whatever you would like to.


• You pay back the loan, with interest, when you leave your home. You can never owe the lender more than what the current value of your home is since it is insured.