A reverse mortgage is a loan that grants approximately 40-65% of the appraised value of your home. You do not make payments on the loan during your lifetime. The money received from the loan, in addition to a low interest rate amount, is paid back when the last surviving spouse of the estate has passed on or has permanently left the home. The monetary funds to make the payment usually become available at the sale of the estate.

In most cases, those who obtain a reverse mortgage receive a substantial amount of cash within 30-60 days. You retain 100% ownership and the future appreciation of your home.

If you already have a mortgage on your home, you can still acquire a reverse mortgage. You would have to pay-off the balance of your existing mortgage with the funds that you receive from your reverse mortgage. This would eliminate your regular monthly mortgage payment , thereby increasing your monthly income.

The appraised value of your home, the current interest rate, and your age are the factors that determine the amount you would receive.

Reverse Mortgage loans were designed by the U.S. Department of Housing and Urban Development (HUD) in the late 1980's from the lobbying efforts of AARP. Most Reverse Mortgage loans made today are insured by the Federal Housing Administration (FHA)(a government supported mortgage insurance program).