What is a Reverse Mortgage?

A reverse mortgage allows a senior homeowner to, "Improve your lifestyle by converting your lifetime treasure into lifetime income without giving up the treasure."

A Reverse Mortgage is a mortgage loan that enables homeowner's (62 or older) to convert part of the equity in their home into tax-free money without having to sell their home, give up title or take on a new monthly mortgage payment.

All borrowers must be at least 62 years old and reside in their own home.  There are no income or credit requirements.  Any existing mortgage or home equity loans need to be paid off with the loan proceeds.  Borrowers are responsible to maintain homeowners insurance and pay all annual real estate taxes. 

For more specific details or to receive a copy of AARP's "Home Made Money" Consumer Guide to Reverse Mortgages, please go to http://www.aarp.org/money/revmort/revmort_basics/a2003-04-07-homemademoney.html