Reverse mortgages are home loans that allow a homeowner aged 63 or over to use a part of the equity of the home. The funds could be paid through monthly payments, lump sum or line of credit.
With the advent of the Home Equity Conversion Mortgage (HECM), or reverse mortgages, seniors have had an opportunity to take advantage of the equity in their homes. In many ways, this can be very beneficial. Seniors can use the money to pay off debt, make home repairs and renovations, help family members or take a trip of a lifetime.
An ever growing population of retirees, having had it good for many years, is now looking toward a rather less rosy horizon, than the one that they had anticipated. For many, savings aren't nearly as safe as they were, and property values have plummeted. And it doesn't look as if things are going to be showing signs of significant improvement, any day soon.
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