WHAT IS A REVERSE MORTGAGE?
A Reverse Mortgage is exactly what its name implies. Think of a typical mortgage and now, reverse the payment structure. Instead of borrowing money from the bank against a portion of your home and paying it back on a monthly basis, the lender pays you on a monthly basis, or in the manner you choose, for the portion of the home you have built equity in.
In the 1980’s, the Federal Housing Administration approved a new, government-insured Reverse Mortgage home equity loan product called a Home Equity Conversion Mortgage (HECM). This product was exclusively designed to meet the needs of those 62 years of age and older. A Reverse Mortgage may provide them the ability to access some of the equity in their home.