A reverse mortgage is a unique type of home loan designed for homeowners aged 62 or older, allowing them to convert part of their home equity into cash without having to sell the home or make monthly mortgage payments. It’s an ideal solution for retirees looking to supplement their income, pay off existing mortgages, cover healthcare expenses, or simply enjoy greater financial freedom in retirement.
With a reverse mortgage, the lender makes payments to the homeowner based on the value of the home, and the loan is repaid when the borrower sells the home, moves out permanently, or passes away. The homeowner remains the owner of the home and is still responsible for property taxes, homeowners' insurance, and maintenance.
