Reverse Mortgage Update

Recently, reverse mortgages have been in the news as the rules governing them have been changed. They are a financial device, a loan in fact, that allows homeowners who are 62 years old and older to convert their home equity into accessible funds in the form of incremental or lump-sum cash payments, or a line of credit. So rather than the homeowner paying a mortgage payment every month, the bank pays the homeowner. This reverse mortgage loan is due with interest when the homeowner and borrower dies, moves, sells or forfeits the home. Typically, the homeowner’s heirs sell the home, pay the balance, and keep the remainder.
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