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February 16, 2009

Reverse Mortgage

Your Guide



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.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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