Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Reverse Mortgage

Your Guide

Print

Definition

Program that allows homeowners, typically age 62 and older, to convert the equity in their home to income. Under a reverse mortgage program, the financial institution makes payments to the home-owner . Typical payment options include either in a lump-sum or monthly payments . Terms of payment are usually negotiable and can be for a fixed period or for the life of the homeowner.

Referring Cite

National Reverse Mortgage Lenders Association (NRMLA)

Additional Helpful Information

  • The payment amount is usually determined by the value of the home, the age of the homeowner, and the period for which the payment will be made
  • Social Security or Medicare benefits are not affected by income from a reverse mortgage
  • Income received from a reverse mortgage may affect Medicaid, if the amount received is not spent in full during the month the payment is received.
More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change