Reverse Mortgage

A reverse mortgage allows a borrower, age 62 or older to convert a portion of their home equity into cash. Instead of a borrower making monthly payments to a lender, the lender now makes payments to the borrower to help cover basic living expenses.

Pros:

1. Seniors can convert equity in their homes into cash
2. Don’t have to pay back the loan and interest as long as you live in the house

Cons:

1. Subject to aggressive lending practices and false advertising practices