Before we list out the benefits of a reverse mortgage, let us understand what it is?
It is a type of mortgage where homeowners can borrow against the value of their home. No repayment of the loan is required until the borrower dies or home is sold. The calculations of the loan are made in such a way that the loan amount will not exceed over the life of the loan. This kind of a mortgage provides income that borrowers can tap into during their retirement. It is another way in which you can get some money from your home. In the past you had to sell your home or use it as a collateral for a loan. (more…)