A reverse mortgage is a type of loan available to homeowners aged 62 and older that allows them to convert part of their home equity into cash. Unlike a traditional mortgage, where the homeowner makes monthly payments to a lender, a reverse mortgage pays the homeowner. The loan is repaid when the homeowner sells the home, moves out permanently, or passes away.Key Features of a Reverse Mortgage:No Monthly Payments: Borrowers receive payments instead of making them, though they must continue paying property taxes, homeowner’s insurance, and maintenance costs.Loan Repayment: The loan balance increases over time as interest accrues and is repaid when the borrower no longer lives in the home.Home Retention: The homeowner retains ownership of the home as long as they meet loan obligations.FHA-Insured Option: The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA).Ways to Receive Funds:Lump Sum – A one-time payment.Monthly Payments – A steady income stream.Line of Credit – Borrow as needed.Combination – A mix of the above options.Pros & Cons✅ Pros:Provides financial relief for retirees.No repayment is required while living in the home.Flexible payment options.❌ Cons:Loan balance increases over time.May reduce inheritance for heirs.Fees and interest rates can be high.Would you like to explore if a reverse mortgage is right for your situation?Tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566 dda mortgage nmls#324329 Support the show

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