A Reverse Mortgage is a method of receiving funds by mortgage withOUT paying for them up front. Closing costs are wrapped into the mortgage. The borrower RECEIVES PAYMENTS or a LUMP SUM from the bank rather than MAKING PAYMENTS. This mortgage enables eligible homeowners who are at least 62 years old to access the equity in their home TODAY and receive a periodic or steady cash flow or lump sum for the rest of their lives as long as they or a spouse reside in the property. This is equivalent to "spending down" the equity in your home while living there withOUT having to make monthly repayments. You remain on the title and still pay taxes, insurance and upkeep costs as you do now.
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