PROCEED WITH CAUTION:
Don’t sign the loan documents unless you understand
1. how a reverse mortgage works.
2. Know your options — you may have a better choice.
3. Have a serious talk with a counselor before you make
any decisions.
What is a Reverse Mortgage?
It is a loan
How Does a Reverse Mortgage Work?
After years of paying off your mortgage, you have built up value in your home in the form of equity. With a reverse mortgage, you borrow against your equity.
The loan balance grows over time. You don’t have to pay the loan while you live in the home.
When you move out, sell your home, or die, your loan must be paid off. Usually the loan is paid off when the home is sold.
Learn more here...
http://seniorjournal.com/NEWS/ReverseMortgage/2013/20130613_Clear_Brief_Explanation.htm
