Reverse Mortgages: What Is It And How Do They Work?

What Does It Mean To Take Out A Reverse Mortgage On My House?
Similar to a Home Equity Line of Credit (HELOC), a Reverse Mortgage is simply a loan taken out against your home. The unique benefit of a Reverse Mortgage is that you have the flexibility of making any amount of a payment that you choose.

Example: Interest-only payments or principle and interest payments which can pay off your loan in 5,10, 20 years etc. By choosing to make payments on a monthly basis, you are treating this loan like a traditional mortgage which is how we advise on tackling this loan.

You also have the option to not make monthly payments, which is a good option for some. However, most seniors would like to leave their heirs with as much equity as possible which is why we encourage making payments.
Just like with a Home Equity Line of Credit (HELOC), you are responsible for continuing to pay your property taxes and home insurance.

Just like a Home Equity Line of Credit (HELOC), there is never a pre-payment penalty to pay your loan off early.

Just like a Home Equity Line of Credit (HELOC), you are only being charged interest on the amount you borrow from your loan. The less you borrow, the less you will owe in the future.

Just like a Home Equity Line of Credit (HELOC), the bank NEVER owns your home (or NEVER wants your home).