WHAT IS A REVERSE MORTGAGE

I've heard of a reverse mortgage but what exactly is a reverse mortgage.

Its a loan that let me convert a portion of the equity in my home into cash. The social security I'm drawing isn't enough to meet my monthly bills thats why I got one.

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you.

The reverse mortgage is federally-insured as well.

It is terrific for us seniors if we remember to take care of our money when we get it.

It is a loan that lets you live your life time in your home and live off the equity. It means that you will be able to spend the money instead of your kids if you wish and need it.

Its a federal program for senior citizens 62 years and older that own their homes giving them the ability to borrow on the equity of their home. It, also, ensures that the bank will receive full repayment of your loan balance, even if it exceeds the value of your home. This means that you cannot be forced to sell or vacate your home, even if the loan balance exceeds the value of your home. In addition, as a HECM borrower, neither you, your heirs, nor your estate will ever owe more than your loan balance or the value of your property (whichever is lower) and no assets other than your home must be used to repay your debt, because, the FHA insurance covers any further financial obligation to the bank.

Another advantage to the HECM Reverse Mortgage is that you are guaranteed to retain ownership of your home for life.

The Reverse House loan is a residential house mortgage personal loan supplied by lending institutions these kinds of as financial institutions and home finance loan firms, and insured because of the government through the Office of Housing and urban Enhancement as well as Federal Housing Authority .