Reverse Mortgage
Reverse Mortgages, often referred to as Home Equity Conversion Mortgages, are a type of loan exclusively for seniors aged 62 and above that let an older adult convert a portion of their home equity into cash to help fund their retirement. A Reverse Mortgage differs from a traditional second mortgage or home equity loan in that the loan doesn’t need to be repaid until the home is no longer the principal residence of the borrower, or the obligations of the mortgage fail to be met. Counseling by a HUD-approved counseling agency is a federal requirement, to help seniors understand the pros and cons of applying for a Reverse Mortgage loan.