Is it time to 'reverse' your thoughts on reverse mortgages?

If there is a financial product out there that people seem to love to hate, it’s a reverse mortgage. But is that fair?

Here are a few facts that might change your perspective and “reverse” some of the misconceptions out there.

What is a reverse mortgage?

Reverse mortgages are loans that allow you to access some of your home’s equity without making a payment or forcing you to sell. However, a reverse mortgage loan ultimately does have to be repaid either when you move out of the home or when you die. There are some extenuating circumstances when the loan may need to be paid back sooner. For example, if the home is no longer your principal residence, you fail to pay your property taxes or homeowners insurance, or do not keep the home in good repair.

Who qualifies for a reverse mortgage?

You must be 55 or older and the home must be your primary residence. If you qualify, you can borrow up to 55 per cent of the value of your home (based on home value, home type,...

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