What is a Reverse Mortgage?
Meeting Your Financing Needs
After years of paying off your mortgage, you have built up equity in your home. A reverse mortgage provides financial flexibility by allowing homeowners age 62 and older to borrow the equity in their home without having to make monthly mortgage payments.
The amount of funds you are eligible for depends on the age of the borrowers, current interest rates and the value of the property. HECM loans are insured by the Federal Housing Administration (FHA) and offer all the benefits of a traditional line of credit that you can get from a bank, but with added benefits.
As with any mortgage, you must meet your loan obligations, keep up with property taxes, insurance, maintenance, and any HOA fees.