Reverse Mortgage

A reverse mortgage is when you tap into your home's equity and receive monthly payments from a lender. Reverse mortgages are usually granted to retired or older people to help them make ends meet. The reverse mortgage must be repaid upon the death of the homeowner or when the home is sold. A reverse mortgage is also known as a home equity conversion mortgage or HECM. For more related stories click on the related articles listed below.

Featured Reverse Mortgage Article

How Does A Reverse Mortgage Work And What Are The Pitfalls?

How does a reverse mortgage work? A homeowner can take out a loan based on the equity in their home, and the loan becomes due when the home is sold. Usually FHA’s home equity conversion mortgage (HECM) program is loaded with insurance to prevent any loss in case the value of the home drops. However, pitfalls with reverse mortgages can range from life expectancy issues to home value calculations. And any of these pitfalls can cause problems down the line with reverse mortgages.

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