Ask Mike! »  Reverse Mortgage

Q: What is a Reverse Mortgage?

A: A Reverse Mortgage is a product that allows a senior citizen to use the equity in his or her home. This equity does not have to be repaid until the property is sold or the owner dies.

Draws can be made against the mortgage as needed. These funds are not taxable and are not considered income.

There are no payments and interest is compounded and deferred and added to the principal balance. The amount of the Reverse Mortgage is determined by the value of the property and the age of the borrower. The minimum eligible age is 62 and the home must be occupied by the borrower.