A reverse mortgage is a loan for homeowners aged 62 or older, allowing them to convert home equity into cash.
How It Works
Homeowners receive funds from the lender with flexible payment options, and repayment is deferred until they sell the home, move out permanently, or pass away.
Repayment
The loan is repaid from the home’s sale proceeds. Any surplus after repayment goes to the homeowner’s heirs.
Key Considerations
Reverse mortgages have fees, loan limits, and eligibility requirements. FHA regulation and mandatory counseling help ensure borrowers understand the terms. Consulting a financial advisor is recommended before choosing this option.
