A reverse mortgage is a type of loan that homeowners can use to pay off unexpected expenses or help fund their retirement. However, it's terms aren't the same as a standard loan from a bank. Instead of paying for a home, a lender will 'take' equity away from the homeowner in exchange for a standard mortgage payment. See how it works and whether it's worth it for a homeowner to take the risk.
Meeting the Criteria
Not every homeowner is eligible for a reverse mortgage. Here are the requirements every applicant must meet:
- Homeowners must be aged 62 or older.
- Homeowners must not have any outstanding