A reverse mortgage is a loan for homeowners aged 62 or older that lets them convert part of their home equity into cash without selling their home or making monthly payments. Instead, the lender pays the homeowner, and the loan is repaid when the home is sold, the homeowner moves out, or passes away.
The homeowner keeps the title and must continue paying property taxes, insurance, and maintenance. It’s a non-recourse loan, so the borrower or heirs never owe more than the home’s value. It can be a helpful option to boost retirement income while staying in the home.
Homeowners can convert part of their home equity into tax-free income without having to sell the home or make monthly loan payments.
Homeowners can continue living in their home as long as they meet basic obligations like paying property taxes, homeowners insurance, and maintaining the property.
Borrowers are not required to make monthly payments on the loan. Repayment is only due when the homeowner sells the home, moves out permanently, or passes away.
Funds can be received as a lump sum, monthly payments, a line of credit, or a combination, giving homeowners control over how they access their money.
A reverse mortgage can supplement retirement income, helping cover daily expenses, medical costs, or other financial needs without relying solely on savings or investments.
Borrowers or their heirs will never owe more than the home’s value at the time of sale, even if the loan balance exceeds the market value, protecting them from debt liability.
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