Reverse Mortgages

Reverse mortgages (also called home equity conversion loans) enable homeowners, generally over the age of 62, to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.

Reverse mortgages are ideal for homeowners who are retired or no longer working and need money to:

• Better provide for their retirement expenses.
• Use money for vacations and travel.
• Purchase needed Long Term Care Insurance.
• Gift money for their grandchildren's education.
• Better plan their estate.

Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.

Complete the form below to receive AARP's guide on reverse mortgages Home Made Money.  Get the information you need to determine if a reverse mortgage is right for you or your loved one.  (Please specify the article name in the Comments section.)