Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Reverse Mortgage

Print

Definition

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.
More

Keep Learning

10-Year Rule

The 10-year rule is a distribution rule that applies to certain beneficiaries who inherit an IRA or employer-sponsored retirement plan account. Under the rule, the

Still-Working Exception

The still-working exception is a rule that may allow a participant in an employer-sponsored retirement plan to delay required minimum distributions (RMDs) beyond the participant’s

Correction Window for RMD Shortfall

RMD Correction window The correction window is the period during which a missed required minimum distribution (RMD) can be corrected in a way that may

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Be among the first to know when

IRA Rules
Change