Reverse Mortgages: What You Need to Know
A reverse mortgage is a type of home loan that allows homeowners 62 and older to convert part of the equity in their homes into cash. The money can be used for anything, but many people use it to supplement their income, pay for healthcare expenses, or make home improvements.
Reverse mortgages have become increasingly popular in recent years, as more and more people look for ways to stay in their homes as they age. But there are some things to consider before taking out a reverse mortgage, such as whether you will still be able to afford your home if the value of your home declines.
Here are some things to think about before taking out a reverse mortgage:
• How much equity do you have in your home?
• What are your monthly expenses?
• What is your expected retirement income?
• How long do you plan to stay in your home?
• What are the costs of a reverse mortgage?
• What are the risks of a reverse mortgage?