Q: This inquiry comes from Janet. She asks: I see numerous ads for reverse mortgages on television frequently. Can you explain what they are and how they operate?
A: A reverse mortgage allows homeowners aged 62 or older to tap into their home's equity without requiring monthly payments. You retain ownership of your home, but the loan balance increases over time due to accumulating interest and fees. Typically, repayment occurs when you sell the house or move out. With a reverse mortgage, you must continue paying property taxes, homeowner's insurance, and maintain the home in good condition while using it as your primary residence.
