Reverse Mortgage

A reverse mortgage (officially a Home Equity Conversion Mortgage or HECM when insured by HUD/FHA) allows homeowners aged 62 or older to convert a portion of their home equity into tax-free proceeds. Borrowers can take funds as a lump sum, monthly tenure payments, or a growing line of credit, with no required monthly principal and interest payments. The loan balance is repaid when the home is sold, the borrower moves, or the estate settles the property, provided the borrower continues paying property taxes, hazard insurance, and maintenance costs.