A Reverse Mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain ownership. This works like a traditional mortgage, but in reverse. So, instead of making a house payment each month, you receive a payment from your lender. Depending on the type of Reverse Mortgage and the lender, you can take the money in a lump sum, in monthly advances, through a line-of-credit, or a combination of the three. Most Reverse Mortgages do not require any repayment of principal, interest, or servicing fees, for as long as you live in your home. These loans are called rising-debt loans for that reason. The money you get from this type of loan can normally be used for any reason, including paying housing expenses like taxes, insurance, fuel, and maintenance costs.
If you would like a current list of lenders that participate in the FHA-insured program, sponsored by the Department of Housing and Urban Development (HUD) , or additional information on reverse mortgages, write to: AARP Home Equity Information Center, 601 E Street, NW, Washington, DC 20049; 888-OUR-AARP or visit their website at, www.aarp.org/money/revmort/. For additional information, contact: National Center for Home Equity Conversion, 360 N. Robert, #403, Saint Paul, MN 55101; 651-222-6775; Fax: 651-222-6797; www.reverse.org/
You can also contact the Federal Trade Commission (FTC) for information about Reverse Mortgages. Contact Federal Trade Commission, Public Reference, 600 Pennsylvania Ave., NW, Washington, DC 20580; 877-FTC-HELP (382-4357) ; www.ftc.gov
Income Eligibility: None
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