What is a Reverse Mortgage?

1.  The homeowner borrows against the equity in his/her principle residence.
2.  Payment to the homeowner is received in either a lump sum on a monthly basis for a fixed term or as long as the homeowner remains in the home or on an ocassionally basis as a line of credit.
3.  No payment is required during the homeowner’s life time, the balance is due, plus interest, when the home is sold.
4.  HUD Program applies to persons age 62 or older.
5.  Under HUD, the amount of the loan is based on age, interest rate and home value.