DayCents

Reverse Mortgage

A reverse mortgage lets homeowners 62 and older borrow against their home equity and receive payments instead of making them, with the loan repaid when they sell, move out, or pass away. It can supplement retirement income but steadily shrinks the equity you leave behind.

Fees and compounding interest can be significant, and you must keep paying taxes, insurance, and upkeep to avoid default. It's a specialized tool for house-rich, cash-poor retirees — best explored with independent, non-commissioned counseling first.