Reverse Mortgages 

Reverse mortgages (also called home equity conversion loans) enable homeowners, over the age of 62, to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not required until the borrower sells the property, moves into a retirement community or passes away. 

When you sell your home or no longer use it as your main home, you or your estate must repay the funds you've gotten from the reverse mortgage plus interest and other finance charges.

Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.  Before applying for a reverse mortgage, you must meet with a counselor from an independent government-approved housing counseling agency.

A reverse mortgage gives you choices in how the loan is paid to you. You can select fixed monthly cash advances for a specific period or for as long as you live in your home. Or you can opt for a line of credit, which allows you to draw on the loan proceeds at any time in amounts that you choose.You also can get a combination of monthly payments plus a line of credit.

Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.