Even You May Benefit From A Reverse Mortgage

You may associate reverse mortgages with homeowners who are struggling to pay medical bills or need cash for living expenses. But even higher net worth individuals can realize financial benefits from a reverse mortgage.

Equity to Cash

With a reverse mortgage, you can convert a portion of the equity in your home to cash, which is paid to you tax-free. You remain living in the home and retain title. However, you must repay your lender if you sell, or, if you remain in it until your death, your heirs are responsible for repayment.

Reverse mortgages are available for principal residences only and homeowners (for married couples, the younger spouse) must be 62 years or older to qualify. Note that the transaction involves interest and fees that could outweigh other benefits.