A reverse mortgage is for homeowners age 62 or older who want to tap into their home equity. The lender pays you money based on how much equity you have in the home.

When you're a senior and eligible. A reverse mortgage can be an excellent option for seniors to unlock their home equity and supplement their retirement income. As Sarah Alvarez, vice president of ...

Since a reverse mortgage must be the first mortgage on the property, their existing mortgage balance of $200,000 would be paid off, eliminating their principal and interest payment of $2,500.

1. You get extra cash to use how you like. The biggest benefit of a reverse mortgage is that it gives you access to a large amount of cash that you can use for any purpose.

The main difference between a reverse mortgage and a home equity loan is the age requirement for a reverse mortgage—as already mentioned, you need to be at least 62. For a home equity loan, age ...

Choosing the right lender to work with when applying for a reverse mortgage is a decision that can significantly impact one’s financial flexibility and, more importantly, provide a sense of ...

A reverse mortgage is generally a loan for borrowers who are at least 62 years old. With this loan, a percentage of the home's equity is converted into usable cash. The lender disburses funds to ...

Lenders must provide FHA-insured reverse mortgage applicants with an estimate of their total annual loan cost (TALC), which shows what you'll pay in certain scenarios.

So, here’s a $500,000 home, and the reverse mortgage would make $200,000 available, as an example. So, we subtract that. So, their down payment of $300,000 gets them into a $500,000 home.

MoMo Productions / Getty Images. Understanding Single-Purpose Reverse Mortgages . A single-purpose reverse mortgage allows homeowners ages 62 and older to turn existing home equity into a steady ...