In short, a reverse mortgage is a type of home loan secured by a primary residence, where repayment is deferred to a later date – generally when the home sells. If you are 62 or older and you want money to pay off your mortgage, supplement your income, or pay for healthcare expenses, for example, you may consider a reverse mortgage. This loan allows you to convert some of the equity in your home without having to sell your home.
The reverse mortgage is not for everyone! You need enough equity built up in your home as well as qualifying with a financial assessment of income and credit to ensure that you can pay property taxes, homeowners’ insurance, and other applicable property charges.