Reverse mortgages are a type of loan that allows homeowners who are 55 years of age or older* to convert a portion of the equity in their home into cash. The loan is repaid when the borrower dies, sells the home, or permanently moves out. Reverse mortgages are designed to provide financial security and flexibility for seniors who may not have a regular source of income or who want to use their home equity to supplement their retirement income or medical costs. Reverse mortgages do not require monthly repayments and the borrower can choose how they want to receive their loan proceeds, such as in a lump sum, monthly payments, or a line of credit. However, reverse mortgages do require the borrower to maintain the property and pay property taxes and insurance. If you are a senior looking for financial security and flexibility, a reverse mortgage may be, and often is, an great option to consider. Bear in mind that Reverse Mortgages are not offered by Banks or Credit Unions. You must go through a mortgage lender or broker to have access to these loans.
*Some loans have higher age requirements