It is All about Flexibility
The primary benefit that one receives with a reverse mortgage is financial flexibility. It is an excellent way to tap into the equity that has built up in your home over time without having to sell the house. After living in your home for decades, moving is often not desirable; staying in the home is the priority. Unlike a traditional home loan, the payment terms allow for the flexibility of not making monthly mortgage payments! Certainly, you can choose to pay the loan down and if you want to later sell and move, you pay back the mortgage through the sale. There is no prepayment penalty.