A reverse mortgage is a collateralized loan product that allows retirees to borrow against the equity they have accrued in their homes. After taking out a reverse mortgage, homeowners have three options to access their loan: accept a lump sum of cash, receive fixed monthly payments, or tap into a variable-rate line of credit.
If you’re unfamiliar with home equity loan products, then it might take a while to wrap your head around the idea of a reverse mortgage. To simplify and streamline your research process, we’ve broken down some of the most important advantages and drawbacks of reverse mortgage financing.
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