What is a reverse mortgage?
A reverse mortgage is a special home loan product that allows a homeowner aged 62 or older the ability to access the equity that has accumulated in their home.
To qualify, you must own the property outright or have a small mortgage balance. Often, the lender may require, as part of the program, that the small mortgage balance be paid. A reverse mortgage does not require payments back to the lender for as long as you live there. The home itself will be the source of repayment.
The loan is underwritten based on the value of the collateral (home) and the life expectancy of the borrower. The loan must be repaid when you die, sell your home, or no longer live there as your principal residence.