What is a reverse mortgage?
A reverse mortgage is a special home loan available to seniors age 62 and over. It allows you to turn the equity you have in your home into cash, and typically does not have to be repaid until you die, sell your home, or move out. You can get the money in a single lump sum, as a regular monthly cash advance, or as a line of credit that you draw as needed. In the end the loan is paid off with the proceeds of the sale of the house. If the house sells for more than the loan amount, the owner of the house, or his or her heirs, gets the difference.