What Is A Reverse Mortgage?
According to the U.S. Department of the Treasury, a Reverse Mortgage is a loan that is secured by your home. You receive payments from the lender (either over time or all at once) based on the value of your home at the time of the loan.
As you receive payments, these amounts are added to your loan balance. Interest is then charged on the outstanding balance, so even if you do not receive any further payments from your lender, the loan balance continues to increase.
To find out if a Reverse Mortgage is for you, you can view a PDF of the helpful booklet: Reverse Mortgages: Are They For You? by clicking here.