NEWSLETTERS
A reverse mortgage is a financial tool designed for homeowners aged 62 and older, allowing them to convert a portion of their home equity into cash without selling their home or making monthly mortgage payments. Instead, the loan is repaid when the borrower sells the home, moves out permanently, or passes away. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). Reverse mortgages can provide retirees with supplemental income, but they also come with fees, interest costs, and potential impacts on inheritance. Understanding the benefits and risks is essential to making an informed decision about whether a reverse mortgage aligns with financial goals.