Reverse mortgages are rapidly gaining in popularity with homeowners who are faced with the reduced income of retirement, combined with rising costs of health care. According to a recent AARP study, 35% of homeowners who take a reverse mortgage do so to help offset health-related expenses.

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 make monthly payments. The funds can be paid to you in several ways:

• Up front, in a single lump sum
• In monthly payments
• Through a line of credit that you can draw on as you wish, which lets you decide when and how much of your available cash is paid to you
• A combination of these payment methods

Regardless of how you receive the funds, you don't have to pay anything back until you die, sell your home, or permanently move out of your home (e.g., into an assisted-living facility). There are no credit or income requirements for a reverse mortgage — you just need to be at least 62 years of age and own your home.

Some important notes about a reverse mortgage:

• You always retain title and ownership of your home. The bank or lender does not own your property.
• You don't have to have your home paid off to qualify. There are no income or credit criteria, like there are with refinancing a home mortgage or taking out home equity lines.
• When you move out of your house, the maximum amount that you will owe is the amount of the loan advanced to you, plus accrued interest. If the amount advanced plus accrued interest is less than the property’s current market value, then that is all you will pay. Even if the money you have received has exceeded the value of your home, there is insurance in place that protects you from paying more than the current market value of the property.

Senior Educators Insurance Services has partnered with Golden Gateway Financial, the leading online reverse mortgage marketplace. If you think that a reverse mortgage may be a good option for you, click here to get your free quote and explore how much cash you can receive from a reverse mortgage.