Reverse Mortgage

Typically, a homeowner must be 55 years or older and have substantial equity in their home to be eligible for a reverse mortgage.
A reverse mortgage allows homeowners to convert a portion of the equity in their home into cash while still living in it. The borrower is not required to make monthly mortgage payments, but interest continues to accrue and must be repaid when the loan comes due, typically when the borrower sells the property or passes away.
There are several costs associated with a reverse mortgage, including origination fees, mortgage insurance premiums, closing costs, and interest.
The loan comes due when the borrower sells the property, passes away, or no longer lives in the home as their primary residence. The loan must be repaid, typically from the sale of the property. If the loan balance is higher than the value of the property, the borrower's heirs are not responsible for the difference.
Alternatives to a reverse mortgage include selling the property, downsizing to a smaller home, or taking out a traditional home equity loan or line of credit. It's important to consider all options and to carefully weigh the pros and cons of each before making a decision.