WHAT IS A SENIOR-CITIZEN REVERSE MORTGAGE?
Instead of paying money to a home mortgage lender who loaned you money secured by your residence, a reverse mortgage is the exact opposite. A reverse mortgage lender pays money to you, the homeowner. But no repayment is required until you move out for longer than 12 months, sell your house or condo, or die. Then the reverse mortgage “matures” and the lender becomes entitled to receive the principal repayment plus accrued interest. The remaining home equity goes to you or your heirs. Contrary to widespread misbelief, the reverse-mortgage lender does not own the residence. If your heirs want to keep the house, they can refinance the mortgage to pay off the reverse mortgage balance. To be eligible for a tax-free reverse mortgage, you and any co-owner must be at least 62. If any co-owner is younger than 62, the residence is not eligible unless that under-62 co-owner signs a quitclaim deed conveying the title to the over-62 co-owner. The amount of reverse-mortgage eligibility is determined
