Our Aim:

We are committed to compiling information and creditable Reverse Mortgage companies to aide in supporting retirees and seniors to live in financial comfort. The goal is to educate about reverse mortgages and assist in the next step of speaking to a reverse mortgage lender. Please feel free to browse our site. Look into the reverse mortgage process to see if it might be right for you.

You have come to this site to get more information about reverse mortgages. It is our job to give you some of the knowledge you need to make a decision and also to direct you to the right reverse mortgage lender.

-First, what a reverse mortgage is NOT:

-A reverse mortgage is not “a way for the  bank to get your house”

-It is not a traditional home equity loan

-It is not based on income or credit levels

-It is not available to homeowners under  the age of 62

-It is not free money

-It is not a cure-all

-It is not a decision to be taken lightly

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provides these benefits, and it is federally-insured as well.

A Reverse Mortgage is a wonderful tool for homeowners 62 years of age and older to obtain cash from the equity in their home. The homeowner continues to live in the house while using the money in virtually any way he or she chooses.

There are a number of options for how to “structure” the money received.

1. Receive a one time lump sum.

2. Receive the money monthly.

3. Receive a credit line that provides     flexibility.

4. Use a combination of the above     methods.

           Mortgage Calculator Link

Once you receive the money, there are virtually no restrictions on the way in which it can be used. You CAN:

-Repay existing debt, including the  existing mortgage (must pay existing debt)

-Make Home Improvements

-Finance Regular Living Expenses

-Ease Healthcare Costs

-Take a Trip to Somewhere You’ve  Always Wanted to Go

-Give Gifts to Your Family and Friends

It almost seems too good to be true. There are, however, as with everything these days, costs involved. There is an origination fee, closing costs, a servicing fee, mortgage insurance, and interest. These costs come from the proceeds of the loan. You pay very little directly out of your pocket.

You should also know that you cannot lose your home at any time during the life of the loan for failure to make payments. THERE ARE NO PAYMENTS TO MAKE. The loan does not come due until you permanently leave the home or the last borrower dies. The home must be kept up to reasonable standards, it must be insured, and the property taxes must be paid.

Default risk is one of the ways in which a reverse mortgage differs from a traditional mortgage or home equity loan. With those traditional products there is a risk of default and therefore a chance you could lose your home. On the other hand, there are no payments to make with a reverse mortgage. Therefore, as long as the property is kept to a reasonable standard, you will always have somewhere to live.

In addition, you can never owe more than the value of your home. Even if you have been paid more than your home is worth, you can only owe the value of your home. When the loan comes due, you or your heirs can either pay off the loan with existing funds or sell the house in order to satisfy the loan. Excess proceeds from the sale go to your or your estate.

It is very important to deal with the right people in the process of obtaining a reverse mortgage. At ReverseMortgageDirectory.org we only deal with HUD approved reverse mortgage lenders. In order to be contacted by the appropriate lenders, just click Reverse Mortgage Lenders.