As an eBay/Amazon Partner, I may be compensated if you make a purchase - at no additional cost to you.

A reverse mortgage is a type of loan that allows homeowners who are 62 years of age or older to borrow money against the equity they have built up in their home. The loan is repaid when the homeowner moves out of the home, sells the property, or passes away.

While the borrower retains ownership of the home during the life of the loan, the lender places a lien on the property to secure their interest in the loan. This means that the lender has the right to sell the home to recoup the outstanding loan balance if the borrower defaults on the loan or fails to meet the terms of the loan agreement.

It’s important to note that the borrower is responsible for maintaining the property, paying property taxes, and homeowner’s insurance while the loan is outstanding. Additionally, the borrower must continue to use the home as their primary residence.

Once the loan is repaid, either through the sale of the home or through other means, the borrower or their heirs will retain full ownership of the property.