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?
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.
Surprising Benefits of Reverse Mortgages
Reverse mortgages offer tax-free cash, allowing seniors to access home equity without selling their property. With no monthly payments, homeowners can ease financial stress while continuing to live in their home. This flexible option helps cover expenses and boosts retirement income.