Legal Solutions for You,
Your Family & Your Business

Take Out a Reverse Mortgage

A reverse mortgage is a way to tap into the equity of your home without selling the house. You get money from a lender and generally don’t need to pay it back as long as you live in the house. The loan must be repaid only if you sell your house or, after your death, when the house is sold and the lender is repaid from the proceeds.

You’ll be able to get a reverse mortgage (also called a home equity conversion mortgage) if you have substantial equity and are over age 62. These mortgages are heavily regulated by the Federal Trade Commission and are a safe approach to preventing foreclosure and preserving your equity for your own needs.

Reverse mortgages, because they take part or all of your equity, leave less value for you to pass on at your death. Also, it may be harder to obtain a reverse mortgage in a time of rapidly decreasing property values because the reverse mortgage lender, like everyone else, will be uncertain about the amount of equity you have in the property.

More information about reverse mortgages. Learn more at www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm.