Reverse mortgages are loans that allow homeowners to convert home equity into cash.
If you are 62 or older, a reverse mortgage lets you hold the title and keep living in your home, while collecting payments generated from a loan secured by the home’s equity. Opt for a lump sum payment, or take monthly cash advances during the life of the loan. Because the money is paid as a loan, it’s not considered taxable income and won’t affect Social Security or Medicare benefits.
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Consult your Social Security, Medicare or other financial advisor to determine how Reverse Mortgage payments may affect your particular situation. Also consult your tax advisor. You must also continue to occupy your home as your primary residence, keep it in good repair, with all taxes and insurance premiums up to date. Subject to terms of your mortgage.