Navigating Reverse Mortgages: Pros, Cons, and Eligibility

Navigating Reverse Mortgages: Pros, Cons, and Eligibility

The Basics: Understanding Reverse Mortgages and How They Work

Reverse mortgages have become an increasingly popular option for homeowners as they approach retirement age. Unlike traditional mortgages, which require monthly payments to the lender, reverse mortgages allow homeowners to tap into the equity of their homes without making ongoing payments. Instead, the loan is repaid when the homeowner sells the property, moves out permanently, or passes away. The amount borrowed, plus interest, is then repaid to the lender from the sale proceeds.