Reverse mortgages are helping older Americans achieve greater financial security which allows them to enjoy their retirement years to the fullest.

A reverse mortgage is a home loan that allows seniors to use the equity in their homes to improve the quality of their lives while keeping their independence. By converting equity into income, a reverse mortgage not only eliminates the monthly mortgage payment, but also could provide a tax-free income that could be used for any purpose including living expenses, healthcare costs, home improvement, vacations, helping the kids or even purchasing another home.

Homeowners who are at least 62 years of age can qualify for a reverse mortgage even if they do not have good credit or much income. The size of the loan depends on the applicant’s age, the home’s value and equity, and interest rates. Proceeds from the loan can be taken as a monthly payment, a lump sum payment or kept on a line of credit to be used whenever the borrower wants to. As long as the borrower remains in the house there are no payments due. Once the last borrower moves out of the house, the loan would need to be paid by selling the house or refinancing by the heirs. The lender does not take title to the house and the borrower or heirs will never owe more then what the house is worth.

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Jim Wagoner is a reverse mortgage specialist at Northwest Mortgage Group in Portland. He can be reached at 503-330-3512.