For many people, the word mortgage is enough to make them run out of their homes screaming. After all, a mortgage is a considerable financial obligation and while it fuels real estate investment, it can still cause a bit of a stress. However, can you imagine a mortgage in which a home mortgage lender pays you? Well, you don’t have to imagine anymore, because that is exactly what happens – a reverse mortgage. A reverse mortgage is a type of mortgage where things work in reverse. Generally limited to homeowners who are at retirement age, a reverse mortgage involves a home mortgage lender using the homeowner’s equity in the home as security, allowing the home mortgage lender to make periodic payments to the homeowner. This allows the homeowner to cash in on their real estate investment by using the home’s equity to finance other endeavors. If you are a homeowner who is interested in obtaining a reverse mortgage, it is important to note that you are only able to have a reverse mortgage on your home’s primary mortgage. Therefore, if you have a second home mortgage, then you have to pay it off before you can get a reverse mortgage. However, in some instances, you may be able to obtain a lump sum advance from a reverse mortgage and use it to pay off the second mortgage. When you are looking to obtain a reverse mortgage, it is important to know that your reverse mortgage debt can never exceed the value of your home’s worth. The total debt of a reverse mortgage can be calculated as the total value of any lump sum advances you acquire in your reverse mortgage in addition to the reverse mortgage loan’s interest rates. Considering that many home mortgage lenders offer reverse mortgages at different costs, it is extremely important for a homeowner to do some careful research before obtaining a reverse mortgage loan. If you are looking for a reverse mortgage, the first thing that you should consider is its cost. Depending on the home mortgage lender, you may be able to obtain a reverse mortgage at a low price. However, the other issue that you should consider with reverse mortgages is its interest rates. As the interest rates add to the debt of a reverse mortgage, it is in your best interest to find a reverse mortgage with a favorable interest rate. Whether it’s a home renovation or medical bills that you have to suddenly pay off, there are a number of reasons why a homeowner would want a reverse mortgage. However, many homeowners are reluctant to obtain a reverse mortgage because they are considering selling their home. If that’s the case, you should know that you can still sell your home while being on a reverse mortgage. You will be able to keep the difference between your home’s selling price and the debt that you owe from your reverse mortgage.