Using Second Mortgages ( Reverse Mortgages) to Pay For Long-Term Care

Using Second Mortgages ( Reverse Mortgages) to Pay For Long-Term Care
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provides these benefits, and it is federally-insured as well. To obtain a HUD-insured reverse mortgage you must be 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home.