What is a Reverse Mortgage?

For many seniors, the equity in their home is their largest asset, but accessing that equity can be challenging without a home equity loan. Traditional loans require repayment with interest, which doesn’t truly free up the equity. A reverse mortgage is an innovative, risk-free way for homeowners to tap into their home’s equity without creating monthly payments or requiring repayment during their lifetime. Instead of paying the lender, homeowners receive payments from the bank, which is why it's called a "reverse" mortgage.

Seniors across the country find that a reverse mortgage can help in many ways: paying off an existing conventional mortgage, providing funds for a down payment on a second home, consolidating debt, or financing home repairs or remodeling. The popularity of reverse mortgages is skyrocketing, with the number of these loans tripling in the past five years. The possibilities for using this untapped wealth are endless.

For seniors facing financial challenges, a reverse mortgage can offer the extra income needed to stay in their home. It can also help finance repairs and improvements, which may increase the home's value when it’s time to sell.