Reverse mortgages are becoming more popular as a alternative for senior citizens who are homeowners. A reverse mortgage provides a way for seniors to borrow against the equity in their home with no repayment due until the homeowner dies, moves or sells. Any remaining equity after repayment goes to the borrower or the estate.  

 If you are considering a reverse mortgage, it may be of benefit if:

•You need cash assets or income and have no other source available.
•You are unable or unwilling to sell your house.
•You do not care what the costs are to get the income or assets you need. (Recent law has helped limit the outrageous costs of reverse mortgages.)
•You have no concern about which assets are left to your heirs.
Make sure you thoroughly scrutinize all costs and provisions.

The amount of money you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You can use this online calculator on the AARP website to get an idea of what you may be able to borrow.

There are some cost involved, many of the same costs that someone pays to obtain a home purchase loan, or to refinance their existing mortgage, apply to reverse mortgages too. You can expect to be charged an origination fee, up-front mortgage insurance premium (for the FHA Home Equity Conversion Mortgage or HECM), an appraisal fee, and certain other standard closing costs.In most cases, these fees and costs are capped and may be financed as part of the reverse mortgage. If a reverse mortgage sounds like it might be a solution for your situation, visit this website to locate a lender in your area.