Reverse Mortgages

A reverse mortgage is a loan option for homeowners aged 62 and older, allowing them to convert part of their home equity into cash without selling their home or making monthly mortgage payments. The loan is repaid when the homeowner sells the property, moves out permanently, or passes away.

The most common type is the Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration (FHA). It offers retirees supplemental income and flexibility, with funds available as a lump sum, line of credit, or monthly payments.

While reverse mortgages can ease financial stress in retirement, they come with fees, interest charges, and may reduce the amount left to heirs. It’s important to weigh these factors carefully and determine whether this option fits your long-term financial goals.