Put the Gold in Your Golden Years
For seniors who were hit hard by the recession in what were supposed to be their prime earning years, retirement isn’t all cruises and Cadillacs. Did you know that the average Social Security income for American retirees is just $1,234 per month? Insufficient retirement income can cause folks to neglect their health, become isolated from family and friends, and deprive themselves of culture and recreation. If you’re experiencing these or other cash flow problems, a reverse mortgage may be able to help.
What Is a Reverse Mortgage?
A reverse mortgage is simply a loan program that allows you to trade some of your home equity for cash -- similar to a home equity loan or line of credit. What's different about reverse mortgages is that as long as the borrower continues to live in the house, repayment is not required.
- Amortization is the gradual reduction of a debt by periodic payments of interest and principal that are large enough to pay off a loan at maturity.... <a href='/glossary/what-is-amortization' title='See the full definition of Amortization'>read more</a>
- Annual Percentage Rate
- The annual cost of a loan to a borrower. Like an interest rate, the APR is expressed as a percentage of the loan amount. Unlike an interest rate,... <a href='/glossary/what-is-annual-percentage-rate' title='See the full definition of Annual Percentage Rate'>read more</a>
- Loan Program
- A loan program is the interest rate feature and the terms of your loan. <a href='/glossary/what-is-loan-program' title='See the full definition of Loan Program'>read more</a>
- Loan Terms
- Loan terms are what is expected of the lender and borrower upon disbursement of a loan. <a href='/glossary/what-is-loan-terms' title='See the full definition of Loan Terms'>read more</a>
- Monthly Payment
- The monthly payment is how much a borrower will pay each month toward principal and interest on a loan. <a href='/glossary/what-is-monthly-payment' title='See the full definition of Monthly Payment'>read more</a>
- Monthly Payment with PI
- The monthly payment with PI is how much a borrower will pay each month toward principal and interest on a loan. <a href='/glossary/what-is-monthly-payment-with-pi' title='See the full definition of Monthly Payment with PI'>read more</a>
- Principal is the amount of debt, excluding interest, remaining on a loan. <a href='/glossary/what-is-principal' title='See the full definition of Principal'>read more</a>
- Rate is the amount of interest on the loan, expressed as an interest rate or annual percentage rate (APR) of the principal. Also called an interest... <a href='/glossary/what-is-rate' title='See the full definition of Rate'>read more</a>
- Term refers to the period of time between the beginning loan date on the legal documents and the date the entire balance of the loan is due. <a href='/glossary/what-is-term' title='See the full definition of Term'>read more</a>
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