Reverse Mortgages

A reverse mortgage loan offers homeowners the opportunity to borrow against the value of their home, using it as collateral. Similar to a traditional mortgage, the homeowner retains the title of the home even after taking out a reverse mortgage. The key difference, however, lies in the payment structure: borrowers of a reverse mortgage are not required to make monthly payments. Instead, the loan becomes due when the borrower no longer occupies the home as their primary residence. The loan amount, along with interest and fees, accumulates each month, resulting in a growing balance. Homeowners with a reverse mortgage must still pay property taxes and homeowners insurance, maintain their home in good condition, and use the property as their main residence.