Instead of paying off their house or downsizing, some retirees choose to get a reverse mortgage instead. A reverse mortgage allows those 62 and older to take out a loan on the equity they’ve built up in their homes.
Instead of making payments on your house, you get a monthly check from the lender. You don’t have to pay back your reverse mortgage as long as you continue to live in the house and don’t sell it. The bank gets its money back once you sell the home, no longer live in it or pass away.
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