A Reverse mortgage, also known as a home equity conversion mortgage, is similar to a traditional mortgage. With a Reverse mortgage, you have access to money based on the value of your home. The homeowner will always remain on the title and the deed of the home. A Reverse Mortgage also provides the homeowner with the opportunity to sell the home or pay off the loan early with no penalty.
Unlike a traditional mortgage, A Reverse Mortgage provides the homeowner the opportunity to make whatever monthly mortgage payment you like or no monthly mortgage payments at all. As the homeowner, you have total control over your monthly payments and only remain responsible for property taxes, homeowners’ insurance, and maintenance of your property. The amount of funds available to you in the line of credit option has a growth feature. This line of credit amount can increase over time (unlike any other home equity line of credit in the country). A Reverse Mortgage also gives you the ability to receive money in a lump sum, monthly disbursements, or use the line of credit and take money when you want or need it. This money is tax-free. Another unique feature of a Reverse Mortgage is that it protects you against declining home values because it is a non-recourse loan meaning you or your heirs never owe more than the value of the home.