For many families, their home is their largest single investment. Older homeowners looking for ways to raise current income may consider tapping into their home equity by using a reverse mortgage.
A reverse mortgage is a loan available to homeowners age 62 or older and is used to convert part of the home equity in a property into cash without having to sell the home or pay additional bills.
Repayment of the loan is deferred until the owner dies, the home is sold, or the owner leaves (for example, moves to an assisted care facility). Seniors can use the funds for any purpose such as supplementing Social Security, paying for medical expenses or making home improvements.
...To continue reading this article you must be registered with AAII.
to read this article and receive access to future AAII.com articles.
Already registered with AAII? Login to read the rest of this article.