Reverse Mortgages For Dummies Roughly 78 million equity-rich baby boomers are heading towards their retirement years, and a new breed of flexible reverse mortgages is expected to provide important financial tools for them. Reverse mortgages, which currently are restricted to seniors 62 years and older, permit homeowners to convert their inert equity into cash for the balance of their lifetimes as long as they reside in the house. The money, plus interest, need not be repaid to the lender until the borrower sells the property, dies or moves out. Whereas FHA’s HECM plan limits total payouts to strict statutory maximums, private plans such as Seattle Financial’s allow loan amounts into the millions. The top players in the fields currently are Well Fargo and Indymac Bank Corp’s Financial Freedom. With its acquisition of Seattle Financial, Bank of America would take over the number three ranking, but officials make no secret of their long-term objective of becoming the biggest reverse mortgage source in the U.S.

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