Q. What are reverse mortgages? How do reverse mortgages work?
A. A reverse mortgage is a mirror image of a regular mortgage.
When you get a reverse mortgage, you’re essentially paid to live in your home. You receive money from the lender and generally don’t have to pay it back for as long as you live in your home.
You can opt for a lump-sum payment or receive monthly payments.
That’s right. The lender gives you money to stay put in your home. Is the lender just extremely nice? Why do they give you the money?
The answer is that they give you the money because you commit to repaying the money when your home is sold.
In other words, a reverse mortgage is a loan against your home that requires no repayment for as long as you live there.