A reverse mortgage is a mortgage program for homeowners age 62 and older to convert the equity in their home into a lump sum cash disbursement, a line of credit, monthly payments or a combination of these. A reverse mortgage works as the name implies, you do not make payments to the lender. Instead payments are made to you from the lender!
Reverse mortgage repayment is deferred until the the borrower dies, sells the home, moves out of the house, or defaults on other housing obligations such as insurance or taxes. Heirs and borrowers are not responsible for the loan amount beyond what the home is worth should that situation arise. You or your heirs do not have to give up the home, there are options. Reverse mortgage proceeds can pay off existing mortgages and liens. Borrowers are responsible to maintain and keep current property taxes and insurance on the home.
*Millenium Home Mortgage LLC arranges HECM reverse mortgage loans with third party providers as a broker only, not a reverse mortgage lender or mortgage correspondent lender.
*These materials and statements are not from HUD or FHA and were not approved by HUD or a government agency.