How can I go about obtaining a reverse mortgage and how do they work?

A ';reverse'; mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here......





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________________________How can I go about obtaining a reverse mortgage and how do they work?
Sell the house and rent it back from the buyer. The terms are MUCH better.





Edit: Don't believe ANYONE claiming to be a reputable lender on Yahoo Answers. If they WERE reputable, they would abide by YA rules and NOT post advertisements disguised as answers.How can I go about obtaining a reverse mortgage and how do they work?
Be careful, they can have really hefty fees associated with them. You should probably get some independent advice before you commit to anything.
On of the best resources for information about reverse mortgages - a loan that can provide you with a lump sum or a monthly income stream for as long as you live in your home - is the AARP website. Go to the following link for information on reverse mortgages: http://www.aarp.org/money/revmort/





There are many disreputable lenders out there, so be careful and do your research well.





Another excellent resource is the U.S. Department of Housing and Urban (HUD) development website at


http://www.hud.gov/buying/reverse.cfm





This site will tell you all about the fees and how much you can borrow. You don't need to pay back a reverse mortgage - the loan gets paid back when you pass away or if you sell the house.





Also, beware of any lenders who try to persuade you to invest the proceeds of your reverse mortgage into any kind of investment such as a variable annuity. Don't go there! In fact, there is no need to ';invest'; any of the proceeds of your reverse mortgage. It is probably better to take the monthly income stream - it might be easier to budget your money that way.