Reverse Mortgage Information
A reverse mortgage is a unique loan, also called a "Home Equity Conversion Mortgage". It is designed for seniors, 62 and older, that allows the homeowner to access some of the equity in their home in the form of monthly income, an equity line of credit, or immediate cash.
The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. The homeowners will never have to make a payment on the loan as long as they live in their home.
If the homeowner lives in their home until death, their heirs have six months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. If the home is sold for less than the balance of the reverse mortgage, the estate is not personally liable.