The primary kind of reverse mortgage is a Home Equity Conversion Mortgage (HECM), which is a reverse mortgage program created by the Federal Housing Administration. This means that HECMs are FHA insured and you know you will always get your payments, even if your lender is unable to make them. The one disadvantage to this program pertains to seniors with high home values because HECM loans have a maximum claim amount that they will loan against. So, even if your home is appraised at $1 million, they will only be able to give you to loan based on $625,500 home value.

The other kind of reverse mortgages are Proprietary Programs, or Jumbos, and they are not insured by the FHA, and therefore subject to different rates, fees and standards. These loans are generally for seniors who have high home values and would like to borrow larger amounts of money against their property. Because the loan amounts are higher and there is no insurance, these kinds of loans also carry more risk. The U.S. Department of Housing and Urban Development will not make sure you are getting all your payments on time if your lender fails and cannot sell your loan to another lender on time.

Either way, your property is never at risk. If you have more specific questions about any kinds of reverse mortgages, feel free to call one of our Reverse Mortgage Professionals, and they can help you figure out what is right for you.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.