How Does a Reverse Mortgage Work?

Have you heard of a reverse mortgage? It's like a gentle breeze of financial relief for homeowners aged 62 and older. Imagine this: instead of making monthly mortgage payments, the lender pays you. Yes, you heard it right!

With a reverse mortgage, you can tap into your home's equity without selling it or adding to your monthly bills. Picture this as your golden ticket to extra cash for retirement or unexpected expenses.

To qualify, simply be at least 62 years young (or 55+ in California) with significant home equity. The amount you can receive depends on your age, home value, and interest rates.

Now, let's talk options. You can choose a lump sum, a line of credit, fixed monthly payments, or a blend of these. It's your call!

Here's the cherry on top: no repayment until you move, sell, or pass away. Then, the loan is repaid from the home's sale. If the sale exceeds the loan, you or your loved ones get the extra. If not, don't fret—the FHA has your back.

And guess what? You still own your home and handle property taxes, insurance, and upkeep. It's a win-win, isn't it? So why wait? Consider a reverse mortgage for a more relaxed retirement journey.