What is a Reverse Mortgage?

A reverse mortgage loan is a unique type of home financing that enables senior homeowners who are at least 62 years of age to access cash monthly or convert a portion of the property's value into instant money. But unlike a traditional equity line of credit or cash out refinance loans, there are no monthly payments ever due to a mortgage company. Think of a reverse mortgage like and annuity loan that pay the senior a premium each month. HUD offers a FHA reverse loan that ensures these benefits and it is federally-insured as well.

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