What is a reverse mortgage?

A reverse mortgage is offered to homeowners who already own their home and have reached an age were they want to withdraw the equity they have accumulated in their home. The money can be taken as a lump sum, as monthly payments or used like a line of credit. Typically this type of loan is re-paid when the last surviving borrower no longer resides in the home for more than 12 months. The home is then sold to repay the loan. Reverse mortgages are not available from all lenders. You should check with each lender to learn the specifics of the reverse mortgage programs they may have available. You as the homeowner are still responsible to pay all homeowner taxes, homeowners insurance and general repair of the home.

More information about reverse mortgages is available at the AARP website at http://www.aarp.org/revmort/.

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