Review:
Reverse Mortgages
overall review score: 3.5
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score is between 0 and 5
Reverse mortgages are a type of loan where homeowners can borrow money against the value of their home and receive funds as a lump sum, fixed monthly payment, or line of credit. The loan doesn't have to be repaid until the homeowner moves out, sells the property, or passes away.
Key Features
- Borrow money against home equity
- No monthly mortgage payments required
- Flexible payment options
- Loan repayment upon move-out or passing away
Pros
- Provides additional income for retirees
- No requirement for monthly mortgage payments
- Can help seniors stay in their homes while accessing funds
Cons
- Accrued interest can significantly increase the loan balance over time
- May reduce inheritance for heirs
- Complex terms and fees to consider