A reverse mortgage is a type of loan that allows seniors to convert some of the equity in their home into cash. The loan is repaid when the borrower sells the home, moves out, or passes away.

Some of the pros of a reverse mortgage include the ability to access cash without having to sell the home, no monthly mortgage payments, and the ability to stay in the home as long as the borrower lives there.

Some of the cons of a reverse mortgage include the potential for high fees and interest rates, the possibility of losing the home if the borrower cannot keep up with property taxes and insurance, and the impact on the borrower’s estate and heirs.

To be eligible for a reverse mortgage, the borrower must be at least 62 years old, own their home outright or have a low mortgage balance, and live in the home as their primary residence.

The amount a borrower can receive with a reverse mortgage depends on several factors, including the age of the borrower, the value of the home, and the current interest rates. Generally, the older the borrower and the more valuable the home, the more they can receive.

A reverse mortgage is repaid when the borrower sells the home, moves out, or passes away. The loan balance, including any fees and interest, is typically paid off from the sale proceeds. If the sale proceeds are not sufficient to cover the loan balance, the borrower or their estate may be responsible for the difference.