A reverse mortgage is a powerful financial tool for homeowners 62 and older to use their home’s equity as tax-free income and eliminate your current mortgage payment altogether!  It's  just the opposite of a traditional or "forward" mortgage -  you'll  receive money using the equity from your home without having to make monthly payments. Unlike traditional “forward” home loans or second mortgages, no repayment is required until the homeowner(s) no longer occupies the property as their primary residence.

Any homeowner 62 or older can apply for a reverse mortgage. The amount you receive with a reverse mortgage depends on your age and the value of your home. The older you are, the more money you are entitled to. Reverse mortgages are based on your age and your home’s equity – there are no income or credit requirements to qualify for a reverse mortgage.

The application process is the same as any other loan. Your current loan (if you have one) will be paid off with your new reverse mortgage, totally eliminating any current mortgage payment you have! From there, you can choose the way you'd like to receive the income from your reverse mortgage – as a monthly payment, in a lump sum or any combination of those options.

Since homeowners with reverse mortgages make no monthly payments, the mortgage amount you owe grows larger over time. As your mortgage increases, the amount of equity you have left after selling or paying off the loan generally grows smaller. But, know this: YOU WILL NEVER OWE MORE THAN YOUR HOME'S VALUE at the time loan is paid. The amount owed at the conclusion of a reverse mortgage is the lesser of the home’s value or current mortgage. Also, your home will continue to appreciate just the same as if you had a regular mortgage, increasing your equity as time progresses.

Reverse Mortgage borrower(s) keep their name on the property’s title and continue to own their homes, so you will still be responsible for property taxes, insurance and repairs. No repayment of the reverse mortgage loan is required until you no longer live in the house.

What kinds of things could you do if your mortgage payment was eliminated? Whether you just want to enjoy everyday life, help a loved one who needs money or take a trip around the world, a reverse mortgage can give you immediate access to your money. See Reverse Mortgage FAQs.

Before moving ahead with a reverse mortgage, I recommend that you consult your financial advisor, tax advisor and/or a reverse mortgage expert to review your specific situation.

For a free, no obligation quote, contact One Reverse Mortgage toll free at 800-251-9080.