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Thomas Said:

Is there anyone here that understands reverse mortgages?

We Answered:

A reverse mortgage is a loan against the equity of your home. All owners of the home must be 62 or older and live in the home as their primary residence in order to qualify.

You are still responsible for paying for taxes and homeowners insurance since you are still the owner of the home. As long as you continue to pay taxes, insurance and maintain the home as your primary residence, there is no repayment requirement. In addition, you can never owe more than your home is worth. In other words, a reverse mortgage is a non-recourse, negative amortizing loan.

Reverse mortgages are popular with people who are "house rich but cash poor". More and more people are incorporating these loans into their overall retirement planning. Closing costs for these loans can be high, but if you're using it for long-term financing, the Total Annualized Loan Cost can be very competitive with other types of loans.

Evelyn Said:

I hear a lot about reverse mortgages, but what about reverse rent where the landlord pays me?

We Answered:

First you actually have to be PAYING RENT in order to qualify! lol