Reverse mortgages are popular for a reason. During the golden years you should be able to put your feet up and enjoy all that you’ve worked so hard to accomplish over the years. Many older home owners, however, are in a place they never thought they would be— reassessing their financial future.
If you’re a senior, 60 or older, having difficulty keeping up with bills or healthcare expenses, there is a way out of your dilemma. A reverse mortgage allows you to draw on the equity in your home without having to sell it so you can retire more comfortably. Instead of making monthly payments— you’ll receive a payment each month.
Created by the U.S. Department of Housing and Urban Development (HUD), this federally insured private loan is essentially the opposite, or "reverse" of a conventional mortgage where you would submit monthly payments. Instead, a reverse mortgage is a loan that pays you each month. A Reverse Mortgage loan is repaid only when you either sell your home or no longer live there as your principle residence. You retain ownership and title to your home. It's yours just as it was before, but now you can benefit from the equity that's been building in it for years.