Designed for seniors, a reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership.
Reverse mortgages work much like traditional mortgages, only in reverse.
Rather than making a payment to the lender each month, the lender pays the borrower. All persons on the title must be at least 62 years old and must occupy the home as their principal residence. Income is not required to qualify. The amount of cash available from a reverse mortgage depends on your age, your home's value and location, and current interest rates. You can select to receive your money through monthly payments, a line of credit, a lump sum, or some combination.