Reverse Mortgages

A reverse mortgage allows a homeowner to receive a lump sum or regular payments from a lender, based on the amount of equity they have in their home. These mortgages are only available to people over a certain age, usually between 60 and 65, and if there are two borrowers, eligibility is based on the younger of the two.

Advantages of a reverse mortgage

  • You don't have a monthly payment on a reverse mortgage. 
  • The amount you owe never exceeds the value of your home. 
  • Fees and interest are usually financed in the loan, so you don't pay upfront. 
  • They offer some flexibility as a retirement tool. 

Disadvantages of a reverse mortgage

  • The closing costs, insurance, and origination fees are usually higher than other mortgage types.
  • The loan is due if you move away from your home. 
  • You can't pass your home on to children or grandchildren

Is it right for you?

A reverse mortgage is a good option for people who:

  • have spoken with a financial advisor on how to use the mortgage strategically
  • are planning on staying in their home
  • don't care about keeping their home in the family after they pass away 

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