You retrieve the equity you have in your home as a lump sum of cash, monthly payments, or a line of credit. To have a senior analyst determine exactly how much, use the Mail Packet form. You never need to repay the reverse mortgage as long as you live in the home.

Your existing mortgage (if you have one) will be fully paid off. The disbursements are tax-free and can be spent however you like with no impact on Social Security or Medicare benefits.

In order to qualify, all homeowners must be age 62 or older. Furthermore, we recommend that you have paid off 40% or more of your mortgage. Finally, you should be planning to stay in your home for at least several years. There are no income or credit requirements.

The cost of an FHA HUD reverse mortgage (HECM) is considerably lower than buying and moving to a new home.

Interest rates are usually lower than the best rates on a traditional mortgage. All costs are packaged into the reverse mortgage so you never have out-of-pocket expenses. The Mail Packet has detailed figures.

Your heirs are never personally liable for the reverse mortgage since it is secured solely by the equity in your home. Your heirs inherit the property and have the option to sell it or refinance with a traditional mortgage.

You owe nothing as long as one homeowner lives in your home. Also, the FHA mortgage insurance ensures that you can never owe more than the sale-price of your home, even if the home depreciates.

When you move out of the home, your estate has up to 12 months to repay the loan (usually by selling). If the home sells for more than the loan balance, the remaining equity passes to your heirs.