Zillow Advice: Mortgage Types - Please explain: What is a REVERSE mortgage ? Thank you, Maria K. Castano http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ Zillow Advice | Zillow Real Estate lets not muddy the facts. ... http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ lets not muddy the facts. <br/><br/>A <a href="http://www.zillow.com/mortgage-glossary/Reverse-Mortgage/">Reverse Mortgage</a> is a lien on a home like any other mortgage. The senior homeowner still owns and can do with the home as they wish. Yes if they live there long enough, there could be negative equity but the homeowner or heirs are not requried to pay off any negative equity balance when the <a href="http://www.zillow.com/mortgage-rates/">loan</a> is due (on the sale of the property or the death of the owner(s)).<br/><br/>Closing costs are definately high relative to traditional <a href="http://www.zillow.com/mortgage-rates/">mortgages</a> so thought must be made as to if this is right for the senior homeowner. <br/><br/>I dont know of any law that says kids are entittled to an inheritence.&nbsp; In fact a reverse mortgage could help protect other assets a senior homeowner may have. Rather that sell stocks or bonds to make their ends meet, a reverse could provide the funds needed to make it easier for a seinor to age in place. Sun, 30 Oct 2011 17:20:00 GMT http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ 2011-10-30T17:20:00Z A reverse mortgage is something ... http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ A <a href="http://www.zillow.com/mortgage-glossary/Reverse-Mortgage/">reverse mortgage</a> is something that charges you a ton of fees for some money. It takes ownership of your house away from you and your heirs unless and until it is paid off. Often times after a reverse mortgage is placed on a house all of the equity is so far gone the house can not be willed. There is not enough left and no heirs can expect to ever live there. This is something I would only recommend in extreme situations. If you have any other financial options available do not do this. Sun, 30 Oct 2011 17:03:00 GMT http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ 2011-10-30T17:03:00Z Mariaits basically you being ... http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ Maria<br/>its basically you being able to pull some of the equity you &nbsp;have built up over the years in your home out, no repayment is necessary until you no longer use the home as your principle residence or fail to meet your mortgage payments.<br/>Here is an excellent website explaining it (the government HUD site)<br/><a href="http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten" rel="nofollow">http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten</a> Sun, 30 Oct 2011 11:10:00 GMT http://www.zillow.com/advice-thread/Please-explain-What-is-a-REVERSE-mortgage-Thank-you-Maria-K-Castano/421154/ 2011-10-30T11:10:00Z