A Summary of Conve rse Mortgages
If you own a home, you know mortgage products have moved beyond the basic 30 year fixed option. converse
mortgages are one such product and here is an summary.
An summary of converse Mortgages
A typical mortgage is created when a lender provides you with a lump sum amount of cash to purchase real estate.
In consideration of this, you agree to repay the mortgage on a monthly basis for a defined time period at a
particular interest rate. The length of the repayment period and interest rate, whether fixed or adjustable, set
the monthly payment amount. Individuals that have shown interest in summaries of converse mortgages have also shown
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A converse mortgage works in a similar way, but backwards. It is a fact that the baby boomer generation is
moving into their retirement years. A high percentage own homes with significant amounts of equity in them. The
problem, of course, is equity is a fixed asset, to wit, you can’t see it in your bank account. Traditionally, the
best way to turn this hard asset into cash was to sell the property and move down to something cheaper. You then
pocketed the difference in the form of cash.
 Many people, however, are attached to their homes. A good portion of your life,
including raising a family, may have occurred in your home and it is emotionally difficult to sell it. On top
of that, tax issues may take a bite out of the cash you receive. Throw in the pure misery of attempting to
move all of your valuables that have been accumulating for 15 or 30 years and selling your home starts to look
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Lenders being the ultimate capitalist, they have come up with a solution for this problem. The converse
mortgage. A converse mortgage allows you to convert much of your equity into tax-free cash without having to take
on a monthly payment obligation. You don’t have to sell the home, go through the moving process or make any monthly
payments to a lender.
A conversed mortgage gets its name from the payment process. Unlike a traditional home cash grant, a converse
mortgage requires a lender to make payments to YOU! You can choose to receive the money as a monthly payment for
the rest of your life, a lump sum payment or even as a credit line. Lump sums are not recommended since home equity
is typically your biggest asset, one you should be very careful with. 
The amount of a converse mortgage is dependent on a number of factors. Your age, interest rates, the appraised
value of the home, the equity in it and so on all are involved in determining your options. Good use of catalogues
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For many people, converse mortgage options are of great interest. The tax free aspect of the payments is
certainly a benefit.
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