What is a Reverse Mortgage?

A reverse mortgage is a type of mortgage that works in “reverse” of your regular forward type mortgage. With a regular mortgage, you pay it down with monthly or periodic payments of principal and interest. Eventually, you may pay it all off. With a reverse mortgage, the borrowers on title must be aged 62 or more, the mortgage may increase in size as you add interest and mortgage insurance that you decide not to pay down (you can opt to pay it down), and its balance outstanding may sometimes grow in excess of the value of your home, which must be your primary residence. It’s a regular mortgage. You own the home and any equity in the home.

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