What is a reverse mortgage? The concept is simple. You've spent years building equity in your home by paying off (or paying down) your mortgage, and through the appreciation in your home’s value. A reverse mortgage simply allows you to withdraw a portion of that equity, to use in any way you like.
You can stay in your home for as long as you like. When you’re ready to sell your home, or you have passed, the loan is repaid at that time.
There are no tax consequences, you do not forfeit any of your rights as the homeowner, and you or the heirs of your choosing decide when or if the home is to be sold. When the loan is repaid, 100% of the remaining equity belongs to you, your heirs or your estate.
Unlike a traditional mortgage, reverse mortgages do not require a monthly payment. In fact, the reverse mortgage pays you in your choice of a lump sum, monthly payments or a combination of both—the choice is entirely up to you.
You must apply for a Reverse Mortgage in person. Stop into your local branch.