Reverse Mortgages Convert Equity To Cash
A reverse mortgage is a loan that lets homeowners over the age of 62 convert a portion of the equity in their home into income. These mortgages offer seniors an option to pay for a variety of expenses and have become increasingly popular as more baby boomers enter or near retirement. Reverse mortgages loans are secured by the home and the homeowner doesn’t have to repay the loan until they die, sell or move out of the home.
Upside: Reverse mortgages allow seniors to convert equity in their homes to cash and you don’t have to pay back the loan and interest as long as you live in the house.
Downside: This type of loan can be subject to aggressive lending practices and false advertising promises, particularly by lenders that prey on seniors. Only work with trusted local lenders and check to make sure the loan is Federally insured.