Reverse mortgages are available to seniors only and is a type of investment that provides a person income again from their home equity.
✔️You can access the cash in your home without having to sell it.
✔️The money borrowed is tax free.
✔️You don’t have to pay the money back if you don’t want to.
✔️You have flexibility in how you receive the funds (lump sum, or planned advances).
❌Reverse mortgages are subject to higher interest rates
❌The principle interest will be paid to the lender upon your death, so there will be less money in your estate to divide amongst loved ones.
❌There tends to be more fees associated with reverse mortgages including appraisals, legal fees, repayment penalties (should you sell your house within three years of obtaining your reverse mortgage, higher interest rates).