A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), is a type of loan that allows homeowners 62 and older to convert part of the equity in their homes into tax-free income. Reverse mortgages are wonderful financial tools for certain individuals; however, it’s a very complex financial decision. If you are considering a reverse mortgage the first step is to talk with a reverse mortgage counselor.

How it Works
During your reverse mortgage counseling session, your counselor will work with you to help explain how reverse mortgages work, the financial and tax implications of taking out a reverse mortgage, payment options, and costs associated with a reverse mortgage. Your counselor will also highlight available resources that you may find useful in meeting your financial needs. Counselors are not lenders or financial advisors. Your counselor's goal will be to help you understand your options so you can make an informed decision.

Upon completion of the counseling session, you will be issued a certificate of participation. If you choose to proceed with the loan process, your lender will likely require this certificate.