As people age, they sometimes find themselves with most of their net worth tied up in their homes. Until recently, the only way to tap that wealth was to sell the home, or take out a conventional mortgage, if possible. But these solutions created problems of their own. There is now an alternative called a reverse mortgage. Under this arrangement, the owner negotiates a loan that works just the opposite of conventional mortgage.
Money is lent to the homeowner in monthly installments which can be used to cover living expenses.
For many senior citizens, this arrangement means the difference between keeping the home and moving out. Reverse mortgages can be a tremendous help to seniors, but they are complex, and can be very expensive. If you are contemplating such a mortgage you need do a great deal of homework before signing a contract, and this Web site is an excellent place to start. We also strongly recommend you speak to an independent financial professional who can help determine if this might be for you.