A reverse mortgage can sound like a dream come true for seniors looking to tap into their home equity without selling their property. But is it really the right financial move for you? While it offers undeniable benefits, there are some hidden risks that seniors need to weigh before committing to this decision. Here’s what you need to know to make an informed choice.
What Is a Reverse Mortgage?
A reverse mortgage allows homeowners aged 62 and older to convert part of their home’s equity into cash, which they can receive as a lump sum, monthly payments, or a line of credit. The loan is repaid when the homeowner sells the house, moves out, or passes away.