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<a href="http://e-articlesite.com/article/Reverse-Home-Mortgage-FAQs/" target="_blank">Get Paid to Submit Article like "Reverse Home Mortgage FAQs"</a><br /><br />What is a reverse home mortgage?<br /> <br /> A reverse home mortgage can be a way for someone with a lot of equity in their home to use that equity as cash. The simplest way to explain a reverse home mortgage is that the homeowner is given cash for the equity, but unlike a traditional mortgage or equity line of credit, the loan is not repaid until the homeowner is no longer using the house as his principal place of residence. This usually does not happen until the homeowner passes away or must relocated to an assisted living facility or nursing home.<br /> <br /> Who can qualify?<br /> <br /> Most banks require that the owner be above a certain age (usually 62 or 65) and have a very low balance left to pay on their traditional mortgage. Some banks will require that you own the home outright and not owe any money on it at all. Generally you are required to pay off any outstanding mortgage balance with the proceeds of the reverse mortgage.<br /> <br /> What if I own a condo/townhouse/mobile Home?<br /> <br /> You will probably still qualify for a reverse home mortgage as long as the other conditions are met. <br /> <br /> Why would I want a reverse mortgage instead of an equity line of credit?<br /> <br /> The biggest reason is that you will not have to make a monthly mortgage payment. The loan does not become due until you no longer in the home. If you are unable to make payments on your credit line, your house could be foreclosed on. You have to meet certain income and debt requirements to qualify for an equity line of credit. Your income make no difference in your ability to qualify for a reverse mortgage.<br /> <br /> Can I get all of the money at one time?<br /> <br /> This depends on the terms of your mortgage. You can either receive monthly payments or have the loan operate like a line of credit so that you can access the money when it is needed.<br /> <br /> This sounds great. What's the catch?<br /> <br /> There is not real catch. But if you were planning to leave your home to your children, they must be able to pay off the loan from assets in your estate or from their own assets if they want to keep the home. If there are not sufficient assets to satisfy the loan, then the house will have to be sold to pay off the loan. Any proceeds remaining after the reverse mortgage has been paid will go to your heirs. This also applies if you must move from the home for any reason. So if you move to an assisted living facility then the loan is due and must be paid from your assets or from proceeds of the sale of the home. You should also be aware that reverse mortgages cost more than traditional mortgages. They usually have higher interest rates and because you are not making a monthly payment, the interest is compounding - usually on a monthly basis. Some banks charge a monthly maintenance fee. The closing costs are also higher. <br /> <br /> A reverse mortgage is not for everyone. However, if you do not have enough income to pay your bills but you have a lot of equity in your home, then it may be the right answer for you.<br /> <br /> Where can I get more information?<br /> One of the best sources of information on reverse home mortgages is AARP. Their toll-free <br /> number is 1-800-209-8085.<br /> <br>1stauker <a href="http://www.linkbrander.com/go/54432" target="_top">Click Here for a Free Money Saving Report!</a>