1 minute read
A reverse mortgage primer
Next Article
BY Norman G. Grill
• Single-purpose reverse mortgages that are offered by state and local government agencies and nonprofit organizations.
• Federally insured reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs), that are backed by the U.S. Department of Housing and Urban Development (HUD).
You can use this cash to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses.
A reverse mortgage is not without risk, however.
Reverse mortgages operate like traditional mortgages, only in reverse. Rather than paying your lender each month, the lender pays you. Three types of reverse mortgage plans are available:
