Reverse mortgages where specifically created for homeowners 62 years of age or older. A reverse mortgage is intended to offer seniors with a decent amount of equity in there home, a way to eliminate mortgage payments and even get extra cash money from it. It is even possible to get a reverse mortgage if you already have an existing mortgage on the home. That mortgage is only due at closing . There are however, a few types of homes that are not eligible for a reverse mortgage usually including any kind of secondary residence like a vacation home. Homes that have been in a trust fund are usually accessible to and eligible for a reverse mortgage as well.

It always pleases seniors to find out that the money one gets from there reverse mortgage is not taxed, because as far as the IRS is concerned it is considered a loan. Furthermore the interest that is accumulated from the loan is tax deductible when the property permanently leaves the owners hands. A reverse mortgage doesn't even effect what you receive for social security, medicare, or pension benefits. The only catch as far as medicare is concerned is that cash received from the reverse mortgage agreement must be spent as soon as possible as to not effect the benefits received..

There are often many costs associated with processes like setting up any type of mortgage, but in the case of a reverse mortgage those costs, which can include, origination fees, closing costs and charges stemming from the efforts of the title and escrow companies involved in a deal, can usually be financed. Usually the only upfront cost to the senior applying are appraisal and counseling fees.

A major reason revers mortgages are so attractive is because the are considered to be what is known as a non-recourse loan. In short this means that a borrower will never owe more than the home is worth. It does not matter what the balance is. When the owner of the property passes away those who take over the responsibility have a few options, they can sell the property and pay off the remaining balance on the mortgage, or they can choose to refinance the property.

Those who enter a reverse mortgage never have to fear a borrower taking there home as long as they keep up with taxes, stay current with there home owners insurance, and keep the property well maintained. There is a point however, that the loan becomes due, and such is the case if the borrower sells the property, leaves the property for ever, or dies.