Reverse mortgages have become the cash strapped homeowners financial planning tool . This type of mortgage was first introduced in 1989 to give seniors age 62 and older access to the equity in their home without having to move from their home.
1. The bank makes payments to the homeowner borrower based on a percentage of the accumulated home equity.
2. The loan is repaid when the homeowner dies, sells the home, or permanently moves out.
3. Seniors 62 and older are eligible.
4. The money can be used for any reason. Typically it is used for supplemental income, health care, pay off debt, or home improvements.