Reverse Mortgage Counseling

A New Kind of Loan: In Reverse

• A "reverse" mortgage (also known as a Home Equity Conversion Mortgage or HECM) is a loan taken against your home. It is available to homeowners who are at least 62 years old. You do not have to repay the loan as long as you live in the home. With a reverse mortgage, you can turn the value of your home into cash without having to move or repay the loan each month. The cash you get from a reverse mortgage can be paid to you in a number of different ways:
  
  
  1. All at once in a single lump sum of cash;
  2. As a regular monthly cash advance;
  3. As a "credit line" account that lets you decide
     when and how much of your available cash
     is paid to you; or
  4. As a combination of these payment methods.
     
     

• No matter 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.

For more information, go to www.hud.gov/buying/rvrsmort.cfm or www.aarp.org or call (716) 884-7791 Ext. 324 • TDD 711.