If you have equity in your home learn how a reverse mortgage can provide you with income and protect your residence.

A Reverse Mortgage is a government insured mortgage program which allows retired seniors 62 years of age or older to stay in their home for as long as they choose without being required to make a monthly mortgage payment. Depending on the equity a homeowner has available in their home they can also qualify to receive additional tax-free money that can be used for anything without having to make monthly payments.

The fact is the Reverse Mortgage was designed by the government to assist seniors during retirement in a wide variety of situations by allowing them to eliminate monthly debt and increase available money. This is done simply by eliminating your monthly mortgage payment and allowing you to access additional tax-free equity in your home.

Think of it working as a standard forward mortgage where the homeowner is required to make a monthly mortgage payment, BUT in exact “reverse.” Instead of being required to make a monthly mortgage payment in a Reverse Mortgage the interest payment is simply added to the loan balance, so it is as if the home is paying for itself. This allows the homeowner to save the monthly mortgage payment and utilize that money to increase their standard of living along with the additional equity that can be obtained.