How does a Reverse Mortgage work?
Available to individuals 62 years of age and older, Reverse Mortgages provide the opportunity to cash in on your home equity to supplement your monthly income. These special mortgages allow the borrower to remain in their home with no monthly payment, and the money they receive through the agreement is not taxed.
Some of the most important features that make a Reverse Mortgage an attractive option include the fact that you get to keep the title of your home, the income you receive is not taxable and it won't likely affect your Medicare or Social Security benefits.
Generally, Reverse Mortgages last until the borrower dies, moves or sells their home. At that time, the loan must be repaid, based on the terms agreed upon at signing.