What Is a Reverse Mortgage?
Homeowners age 62 or older, such as those who reported facing financial hardship, may use a reverse mortgage to borrow money against the equity in a fully paid home.
The Home Equity Conversion Mortgage
The only reverse mortgage insured by the U.S. Federal Government and is only available through a Federal Housing Administration (FHA)-approved lender.
Costs of a Reverse Mortgage
Be aware there are closing costs for a reverse mortgage, which you can pay upfront or defer by permitting homeowners to roll the costs into the loan
HECM Alternatives
There are two non-FHA-insured alternatives to the HECM. Besides being insured by FHA, the HECM mortgages give you more significant loan advances at a lower cost than private loans
Financing Alternatives To Reverse Mortgages
Instead of a reverse mortgage, homeowners can consider the more popular home equity loans or home equity lines of credit (HELOC).