People who are over 60 has the privilege to get a loan which uses a part of the home's equity as collateral, where you can get the principal amount either in lump sum amount or as revolving line of credit or as monthly pay out for a number of years.
Basically, this is still a lending process but the home title remains with the owner. This implies that you are still entitled whatever you wish with your property only that it will be encumbered by the amount of the reverse mortgage.
You will not be burdened of any monthly payment but there will be accumulated fees and interests along with the principal amount. Once the property owner decides to sell, move or passes away that's the time the lender gets paid.
It is a mortgage that allows you to a worry free retirement especially with finances and you will be able to live comfortably. Applying for this loan is easy as long as you have your home equity.
However, since this is a loan, there are downsides to this. This means the home will be weighed down by this which can unfortunately affect the total amount you will get if you plan to sell the property same as if you pass away, your heirs will be burdened once they evetually take the home.
Then there are interest rates and other fees. Unfortunately, there are cutthroat brokers out there who are in it for the commission so it’s best to be fairly knowledgeable about this kind of mortgage to avoid getting tricked into higher rates and fees.
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