Reverse mortgages come in handy for older home owners who might have a financial hardship or who just want some extra cash without having to uproot and sell their homes.
You can either receive a lump-sum loan, a line of credit or a monthly check based on the amount of equity in your home.
This money is also tax-free, since it is a loan. When you sell your home, you use your home’s equity to pay off the loan and interest.
Keep in mind that you need to pay closing costs, such as a loan origination and processing fees.
Typically, to qualify for a reverse mortgage, you need to be over 60.