Reverse mortgage is a home loan available to senior citizens, to let them release the home equity in a property. Reverse mortgages come along with many pros and cons, to take a look at, before indulging in reverse mortgage options.
For homeowners who live in the home in question, there is no payment to be made. They do not even need to pay the house tax for living in that house. The monthly mortgage payments come to an end and the reverse mortgage payment lets the owner pay back the primary mortgage if any. Reverse mortgage lets the owner live in their home and this makes it the most advantageous feature of it.
However, reverse mortgages are available to homeowners of above 62 years of age. Even the co-owners need to meet the age limit. Before the commencement of reverse mortgage, all primary mortgages need to be paid back; although one can make use of the reverse mortgage payment to do so. Income from reverse mortgage makes the homeowners ineligible for Medicaid.