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Whether a reverse mortgage is a good idea or not depends on your individual financial situation and goals.

A reverse mortgage can be a good option for some homeowners who are 62 or older and have significant equity in their home. It allows them to access that equity in the form of loan proceeds that do not have to be repaid until they no longer use the home as their primary residence. This can be helpful for people who need additional income or want to supplement their retirement funds.

However, reverse mortgages also come with potential downsides. They can be more expensive than traditional mortgages, and the interest on the loan can compound over time, reducing the equity in the home. Additionally, if the borrower does not keep up with property taxes and maintenance, they could risk defaulting on the loan and losing their home.

Before considering a reverse mortgage, it’s important to carefully weigh the pros and cons and speak with a financial professional to determine if it’s the right option for your individual needs and circumstances.