All About Reverse Mortgages

Reverse mortgages have only recently begun exploding here in the U.S. and the trend is likely to continue well into the foreseeable future.

What is a reverse mortgage?

A reverse mortgage loan is a lending program available only to seniors. Instead of making payments on a home equity loan, the borrower receives the funds at zero interest and can do whatever they wish with it. The money can be taken all at once, in installments, or even as a credit line in which you can use it at anytime you want.

How does a reverse mortgage work?

After you leave the home or pass away, the loan balance is repaid from the sale of the home. If there is money leftover it would go into your estate and be passed on to your heirs. So, in essence the loan never has to be paid back until you no longer need the home. Another great aspect of this type of loan is that the income is tax free and will not count against you in receiving Medicare benefits.

The funds received from a reverse mortgage can come in handy, or in many cases, become a necessity due to Social Security benefits and retirement funds not being enough to cover your living expenses. These circumstances have become the case in so many situations and a reverse mortgage has helped fill the needs.

Our website will try to help you better understand everything to do with reverse mortgage information. From reviews on loan companies such as a Wells Fargo reverse mortgage, AARP, etc, to Fannie Mae and others. We will also tell you what to expect when applying for a reverse mortgage and so much more. We hope you enjoy our site and come back often as we will be constantly updating it with new articles and helpful content.

Here's a video with information on a HUD reverse mortgage and minimum standards: