What is a Reverse Mortgage Loan?

A Reverse Mortgage is a loan designed for homeowners aged 62 or older. It allows you to convert a portion of your home’s equity into cash—without selling your home or making monthly mortgage payments.

Key Features:

  • No monthly mortgage payments required (must still pay taxes, insurance, and upkeep).
  • Loan is repaid when the home is sold, vacated, or the borrower passes away.
  • Often structured as an FHA-insured Home Equity Conversion Mortgage (HECM).

Benefits:

  • Supplemental income for retirees.
  • Stay in your home while accessing its value.

Considerations:

  • Reduces home equity over time.
  • Heirs may receive less inheritance.
  • Loan becomes due if taxes or insurance aren’t paid.