A reverse mortgage is a type of home loan available to homeowners that are 62 or older. This type of loan allows homeowners to convert the equity that they have in their home into cash income with no monthly mortgage payments. Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower. For many people, a reverse mortgage supplements their retirement income. A borrower may elect to get a reverse mortgage for a number of reasons such as if they need financial assistance or to have additional income post-retirement to meet personal financial goals.
