Unlike other types of home equity borrowing,
when you get a
reverse
mortgage,
you remain the owner of the home.
The lender cannot
foreclose
on the house while it serves as your primary residence. You also
have the right to sell the house and move at any time, keeping
the proceeds that exceed what you owe the lender.
Also, you don’t have to pay back a reverse
mortgage loan until the last surviving borrower dies, sells the
house, or moves. At that time, although all cash advances you’ve
received plus interest and fees have to be paid, you can never
owe more than the current value of the house.
Who to contact
You can arrange for reverse mortgages through
individual lenders, the Home Equity Conversion Mortgage program
of the Federal Housing Administration
(www.hud.gov),
which offers federally insured mortgages, or through Fannie
Mae (www.fanniemae.com).
