REVERSE MORTGAGE FOR SENIORS:
A Reverse Annuity Mortgage is a special type of home loan that allows a senior homeowner to convert part of their home equity into cash to meet monthly expenses, pay unexpected medical expenses, make home improvements or other needs. You have several options on how you wish to receive payments. You can receive monthly payments, a lump sum, or a line of credit or a combination of both. Most reverse mortgages do not require any payment of principal, interest or other servicing fees for as long as you live in your home. Three different reverse mortgage plans are available: FHA-insured; lender-insured; and uninsured. It is important to find out the benefits and drawbacks of each plan. Reverse Mortgages are complicated processes and you might want to consult a lawyer or financial advisor before you apply. For additional information on any one of the following topics, visit the following web sites. If you need additional assistance, call our CHOICES Information Specialist at 1-800-994-9422.
- “Reverse Mortgages for Seniors”
- “Top Ten Things to Know if You’re Interested in a Reverse Mortgage”
- Reverse Annuity Mortgage” (Connecticut Housing Finance Authority)