The reverse mortgage leads the way in opportunities for the senior facing an unclear retirement. In this article I will explain exactly what reverse mortgages are, and who can benefit from them.

Let's say you no longer have the ability to earn a steady income. Yet, you are troubled to think that maybe Social Security or your own savings will not be enough to sustain you after retirement. Or, even if it is, you don't want to worry about counting and pinching pennies during the last years of your life. If you're a homeowner then there may be a much better option.

If you're 62 years old, have equity in your home, and little to no mortgage debt against it, then you should familiarize yourself with a reverse mortgage. Lead the life you deserve by using the equity of your home as collateral against the loan. A reverse mortgage loan is a special type of loan for the retiree, because you're not required to pay it back in monthly payments.

When are you required to pay back? When your home is sold. Typically, this won't happen until you either need to move to an assisted living care facility or you die. In either circumstance, you'll not have to worry about the loan being paid off. That's because the proceeds of your home will go towards your loan, so you don't need to worry about having to pay for anything out of your pocket.

As a bonus, if the value on the home has went up dramatically then what is left is yours or to be given to your heirs. If you can't cover the difference with the amount your home was sold for, then the bank is forced to cover the difference. Because of these unique parameters on the loan, a reverse mortgage leads the list of options for the homeowner who is retiring.

Once you receive your reverse mortgage loan you're only required to first pay off your mortgage, if you have one, before doing anything else. Then, with the balance you can spend it any way you wish. You also receive your loan a number of different ways - one lump sum, monthly installments or draw against it whenever you need.