Most people do not know what a reverse mortgage is? Reverse mortgages are not very common any more. In this situation the bank actually makes payments to the homeowner and upon death or a specified amount of time the homeownership will revert to the bank. The several types of reverse mortgages are

• The federally insured Home Equity Conversion Mortgage (HECM), administered by the Department of Housing and Urban Development (HUD) 
• Single-purpose reverse mortgages, usually offered by state or local government agencies for a specific reason 
• Proprietary reverse mortgages, offered by banks, mortgage companies, and other private lenders and backed by the companies that develop them. 

Qualifying for a retiree is easier than for the normal man. To qualify for a reverse mortgage, you must be at least 62 and have paid off all or most of your home mortgage. In a reverse mortgage, income is generally not a factor, and no medical tests or medical histories are required. Income doesn't affect much because most of the houses are paid up and do not have any debts or liabilities on it. If you seek an HECM, you must undergo free mortgage counseling from an independent government-approved "housing agency." Financial institutions offering proprietary reverse mortgages may require similar counseling or homeowner education.

The amount you can borrow through a reverse mortgage depends on your age, the equity in your home, the value of your home, and the interest rate. You may be paid in a lump sum, in monthly advances, through a line of credit, or a combination of all three, remember that it's a loan, a "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:

• A single lump sum of cash; 
• A regular monthly cash advance; 
• A "credit line" account that lets you decide when and how much of your available cash is paid to you

Remember that regardless of how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home. You will now be free from the monthly repayment hassles with the reverse mortgage nor are you required a steady monthly income. To qualify for most loans, the lender checks your income to see how much you can afford to pay back each month. But with a reverse mortgage, you don't have to make monthly repayments. So you don't need a minimum amount of income to qualify for a reverse mortgage. You could have no income and still be able to get a reverse mortgage. With most home loans, you could lose your home if you don't make your monthly payments. But with a reverse mortgage, there aren't any monthly repayments to make. So you can't lose your home by not making them efficient. The forward mortgage is similar to reverse mortgage. Both mortgages create debt against your home and affect how much equity or ownership value you have in your home. Get the online quote now and get the rate too. 

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