New product offered: Reverse mortgage

Real Estate Weekly, June 7, 2000

Allied Mortgage Capital Corporation is offering a now loan product called a reverse mortgage, which requires no repayment on a loan against one's home.

Reverse mortgage is designed to help homeowners over the age of 62 increase their monthly income for the rest of their lives. With a reverse mortgage, homeowners are allowed to tap the equity they have in their homes and use the money to live on, pay off debts or eliminate any mortgage payments.

Unlike a regular mortgage, a reverse mortgage does not require any income or credit standards to qualify or monthly repayments. Seniors must own their home and live in it for more than half a year to apply for a reverse mortgage. Repayment is deferred until death or the house is sold. The equity in the house pays the debt.