Is a Reverse Mortgage for You?
In a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your home equity. The loan doesn’t have to be repaid until the homeowner sells his residence, moves away, or dies. When you sell your home or is no longer used as your primary residence, you (or your estate) are obligated to repay the lending institution for the cash you obtained from your reverse mortgage plus interest among other fees.