Wondering if a reverse mortgage on your home's equity is a viable financial option for you? Here are ten facts about reverse mortgages in general. Understand the process. Learn the qualifications. Be aware of the conditions.

Understand a Reverse Mortgage ~

A reverse mortgage is where a bank or lending company pays money to purchase equity in a home. In a traditional mortgage, a borrower is allowed to take occupancy of a home while slowly purchasing its equity from a lending company. The 'reverse mortgage' is the opposite situation. The mortgage company purchases a percentage of equity in your home, allowing you to remain in your home, and collects the loan with interest at a later time.

Know the Income Requirements ~

Generally, there are none. Unlike a traditional loan, there are usually no income guidelines or minimum requirements for a reverse mortgage. This is because the mortgage is not intended to be paid in installments. A reverse mortgage is actually designed for borrowers who are of or nearing retirement age. Instead of payments, the reverse mortgage is intended to be paid off when none of the co-owners continue to use the home as their primary residence. The sale of the property, not the borrower's income, will be the source of repayment.

Know Your Payment Options ~

You may choose to receive the total of your reverse mortgage in the form of installments, lump-sum payout, or a personal credit line. You may also divide your payment between these options.

FOR 7 MORE IMPORTANT FACTS, CLICK THE LINK! IT'S FREE!