A reverse mortgage is a type of mortgage that allows for owners to quickly exchange the equity in their home for cash. The mortgage does not have to be paid back until the home is sold, or the owner no longer lives in the home as their primary residence.
Typically reverse mortgages are ideal for elderly homeowners. Since many mature homeowners on a fixed income, using the equity in a home can help with bills, unexpected expenses (such as medical costs) and the upkeep of a home.
The reverse mortgage loan has appeal to a homeowner that has been in their home a long period of time. When considering a reverse mortgage, it is important to investigate the details of the mortgage. Upfront costs can be high when the loan is very high, and the pay off time is over a long period of time as opposed to a shorter period of time.