Reverse Mortgage Money

The rules put no restrictions on what the reverse mortgage money can be used for, and it can even be utilized to pay off a mortgage.

Simply put, reverse mortgages are the opposite of traditional mortgages. Instead building home equity by paying money to a financial institution, equity is converted back into money or credit for the borrowers, even as they keep their homes.

The money owed from the loan comes due when the borrower dies or moves, and is typically repaid either directly or through the sale of the house.