Is a Reverse Mortgage Right for You? Pros, Cons, and Alternatives

For older homeowners looking to tap into their home equity, a reverse mortgage might seem like an appealing option. But is it the right choice for your financial future? Let’s break down how it works, the real-world pros and cons, and what alternatives you might consider — especially if you're aiming to stay financially independent in retirement.

What Is a Reverse Mortgage?

A reverse mortgage is a loan available to homeowners aged 62 and older, allowing them to convert part of the equity in their home into tax-free cash — without selling or moving out.

Unlike a traditional mortgage, you don’t make monthly payments. Instead, the loan balance increases over time and is typically repaid when the borrower sells the home, moves out, or passes away.


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