Reverse mortgage

Reverse mortgage

Q: I’m hoping you can help me understand reverse mortgages. My mom is in her early 60s and has virtually no income because of a sluggish job market in the area where she lives.

A: Reverse mortgages are available only to homeowners 62 or older.

This type of loan allows seniors to convert equity in their home into tax-free cash, without selling, giving up title or having to make a mortgage payment.

A reverse mortgage doesn’t have to be repaid until the homeowner moves, sells or dies.

Borrowers can take the loan as a line of credit, a lump-sum payment, fixed monthly payments or a combination.

The downside of this loan product is the high fees. To get an estimate of the fees you may be charged, try the reverse mortgage calculator at the National Reverse Mortgage Lenders Association’s Web site:

www.reversemortgage.org

Before you contact a lender about a reverse mortgage, visit AARP’s Web site on the topic

www.aarp.org/revmort

On the site you can download for free AARP’s booklet “Home Made Money: A Consumer’s Guide to Reverse Mortgages.” To order a free copy of the guide by telephone, call (800) 209-8085.

Speak with a Reverse Mortgage Specialist Today. Call toll free 1-888-973-8377.