Reverse Mortgages

Reverse mortgages allow homeowners aged 62 and older to convert part of their home equity into tax-free cash without monthly mortgage payments, providing retirement income flexibility. However, these loans come with significant risks, including reduced home equity, potential foreclosure if loan terms are violated, and high upfront costs. Before considering a reverse mortgage, seniors should carefully weigh the pros and cons, explore alternatives, and consult with a HUD-approved counselor to ensure it aligns with their long-term financial goals.