What the Heck is a Reverse Mortgage?

You may have read the term reverse mortgages popping up here and there and wondered what it really meant.

Well a reverse mortgage is a special type of loan made to older homeowners to enable them to convert the equity in their home to cash to finance other needs.

It is an arrangement with bank in which you received periodic payments based on the equity in your home. Eventually, the bank becomes owner of your home at maturity of this mortgage.

I'm sure some people would say this is another way to spend your children's inheritance.

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