Home Selling in Cambridge>Question Details

Kathy Flamer, Home Buyer in Cambridge, MD

What is reverse mortgage?

Asked by Kathy Flamer, Cambridge, MD Sat Aug 23, 2008

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It's basically a kind of second mortgage, except the money is paid out to the home owner in installments, and NEVER has to get paid back for as long as the homeowner lives in the home, which can be under the owner passes away.

For more information read my 5 part blog, including information about the new FHA reverse mortgage program -- link below. If you need such a reverse mortgage, contact me and I will use my connections to get you set up.
0 votes Thank Flag Link Thu Oct 14, 2010
A Reverse Mortgage, also known as a Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, travel and much more.
0 votes Thank Flag Link Sun Aug 9, 2009
Kathy,

A Reverse Mortgage is a government insured program that enables senior homeowners to convert a percentage of the home's equity into cash, while retaining home ownership.

Reverse Mortgages apply the opposite principles of a traditional forward mortgage. Traditional mortgages gain equity in a home by making monthly payments, while a Reverse Mortgage turns equity into tax free income or usable cash. Payments on the money owed are not required as long as the home is being lived in.

A Reverse Mortgage is a safe, secured means by which to achieve financial security, while retaining home ownership. The U.S. Department of Housing and Urban Development (HUD) guarantee seniors who use the Reverse Mortgage program will not pass debt onto their heirs. A Reverse Mortgage is the safest mortgage someone can get.

Hope this helps.
0 votes Thank Flag Link Wed Aug 5, 2009
Once you are 62 you are eligible to tap your home's equity. There are 4 options you are given through a reverse mortgage. Check out HUD's website http://(www.hud.gov), or call AARP at: 1-800-209-8085 for more information about reverse mortgages.
0 votes Thank Flag Link Wed Aug 27, 2008
Kathy
You should probably talk (person to person) with a Reverse Mortgage Lender. I would be happy to refer you to one if you like.

There are some recent changes to reverse mortgages as part of the new housing bill that was passed so you should do your homework before making a decision.
0 votes Thank Flag Link Sat Aug 23, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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A reverse mortgage is a mortgage which uses the equity in your home to give you cash. It is typically available to people over 62 and they can get cash in a lump sum or monthly payments. This loan usually does not have to be paid back until you move out; sell the home; or die. Interest rates tend to be a bit higher for this type of loan.
0 votes Thank Flag Link Sat Aug 23, 2008
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