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:
- Seniors can convert equity in their homes into cash
- Don’t have to pay back the loan and interest as long as you live in the house
Cons:
- Subject to aggressive lending practices and false advertising practices
