What Is Reverse Morgage

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A mortgage finance expert describes how reverse mortgages can potentially act as a “lifesaver” for some seniors in specific financial situations, along with offering advice related to home equity.

Reverse Mortgage Guides is a reverse mortgage educational website. Our goal is to help explain many of the pros and cons of a Home Equity conversion mortgage (hecm) for homeowners. We publish articles and tools for older Americans who are considering a reverse mortgage and want to become further educated before making a decision.

This tool is designed to show you how compounding interest can make the outstanding balance of a reverse mortgage rapidly grow over a period of time.

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A reverse mortgage is a type of mortgage loan that’s secured against a residential property, that can give retirees added income, by giving them access to the unencumbered value of their properties.

When do I have to pay back a reverse mortgage loan? Reverse mortgage loans typically are repayable when you die, but may need to be repaid sooner if you no longer use the home as your principal residence, or fail to pay taxes or insurance, or make needed repairs.

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A reverse mortgage, also known as the home equity conversion mortgage (HECM) in the United States, is a financial product for homeowners 62 or older who have accumulated home equity and want to use this to supplement retirement income. Unlike a conventional forward mortgage, there are no monthly mortgage payments to make.

However, if the owner fails to pay insurance and property taxes, the reverse mortgage is deemed in default and the owner is in danger of foreclosure. Success, and failure. For many retirees, such as 73-year-old Robert Lee White of Fort Lauderdale, Fla., a reverse mortgage can be nothing short of a lifeline.

A reverse mortgage is a useful tool for senior homeowners to help fund retirement. And, with a few options for repayment, you can feel confident that you will find a method that works the best for your situation.

Reverse mortgages can cause problems when spouses, heirs aren’t on board reverse mortgages are one option for seniors to access much-needed cash. But some Arizona homeowners have encountered problems.