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with a Reverse Morgage.
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AARP Reverse Morgages
The American Association of Retired Persons explains all about reverse morgages.
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Morgage Rates
Reverse mortgages may have fixed or variable rates. Most have variable rates that are tied to a financial index and will likely change according to market ...
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Money Magazine
What good is a real estate boom if you don't want to sell your house? With a reverse mortgage, seniors can cash out without moving out.
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Sound Mind Investing
Reverse mortgages are the ultimate in "buy now, pay later" loans. That's because you don't have to repay them at all. Ever. Your estate does...
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Latest Reverse Mortgage News
What are Requirements for a Reverse Mortgage?
To qualify for a reverse morgage in the United States, the borrower must be at least 62 years old. Also, a reverse mortgage works best if the home is already paid in full (no outstanding leins). Some types of homes, such as mobile homes, will not qualify, and if the owner is involved in a bankruptcy proceeding, this can also complicate the process of applying for a reverse morgage. Reverse morgages are also available from state and local governments. These "public sector" loans must be used for specific purposes, such as paying for home repairs or property taxes.
The majority of reverse morgages are FHA insured.
In a reverse morgage, the value of the home, minus the amount of any existing morgages, is converted into one cash payment, or a stream of monthly cash payments. During this process, the owner retains ownership of the home, and continues to live there, without having to make any monthly payments. Repayment of the loan is takes place when the owner (the borrower) is no longer living in the home, or is deceased.
How is a “Reverse Mortgage” Different From A Traditional Mortgage?
In a typical morgage, a home owner pays a monthly amount, with the owner’s equity increasing over time. After a the morgage is paid off, the owner is paid in full, and the home is released from the morgage debt. In a reverse mortgage, the home owner pays nothing each month, but the interest on the debt is added to the lien on the property. If the owner elects to receive monthly payments, the debt on the house will increase each month.