What is Reverse Mortgage?
A reverse mortgage is an increasingly popular consumer loan for senior homeowners age 62+. It allows these senior homeowners to tap into the home equity that has been built up in their current home or it may be used to purchase a new primary residence. There are no monthly mortgage payments, but homeowners are still responsible for paying property taxes, insurance, and maintenance. The repayment of the loan is deferred until the homeowner dies, sells, or moves out of the home. Because there are no monthly mortgage payments and homeowners can generally receive their home equity as tax-free cash, this particular type of loan has seen senior homeowners implement it into their retirement and debt management plans.
