What is a Reverse Mortgage?
A reverse mortgage allows homeowners with considerable home equity to borrow against the value of their home and receive funds as a lump sum, fixed monthly payment, or line of credit. Here are some of reasons why you might want to consider a reverse mortgage:
- Eliminate or reduce monthly mortgage payments.
- Consolidate debt.
- Pull cash out of your home equity.
- Protect home equity from declining home markets.
- Help pay for in-home care.
- Help homeowners stay at home and age independently
Unlike traditional mortgages, a reverse mortgage does not impose the burden of monthly payments. This may be an especially attractive option for borrowers on a fixed income.