Until recently, there were two main ways to get cash from the investment you have made in your home:
1. You could sell your home, but then you would have to move, or
2. You could borrow against the equity in your home, but then you would have to make monthly loan payments.
However, with a "reverse" mortgage, you can receive a loan that does not have to be paid back for as long as you leave in your homw.
Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in Direct Finance Corp.'s reverse mortgage program. The program allows homeowners to borrow against the equity in their homes.
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 Homeowners can receive payments in a lump sum, on a monthly basis (for a fixed term or for as long as they live in the home), or on an occasional basis as a line of credit. Homeowners whose circumstances change can restructure their payment options.
Unlike ordinary home equity loans, a reverse mortgage through Direct Finance Corp. does not require repayment as long as the borrower lives in the home. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors.
With most home loans, if you fail to make your monthly repayments, you could lose your home. But with a reverse mortgage, you don’t have any monthly repayments to make. So you can’t lose your home by failing to make them.
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