Everand Logo

Welcome to Everand!

  • Kiplinger

    Reverse Mortgages: 10 Things You Must Know

    by the Editors of Kiplinger's Retirement Report, Rachel L. Sheedy, Jackie Stewart Mar 26, 2021 6 minutes

    Get a large wad of cash! Never make a mortgage payment again! Stay in your home as long as you want! Sounds like a great deal, right? Well, for some older homeowners, a reverse mortgage can be. 

    For others, it's more perilous than promising. If you’re considering a reverse mortgage, there’s a lot you need to know before signing on the dotted line. 

    Here’s 10 things you need to know about reverse mortgages. 

    What is a Reverse Mortgage?

    It's a loan on your house that lets you tap your home's equity. Like a cash advance, a bank fronts you the money -- either as a lump sum, a line of credit or monthly draws -- and you have to repay it eventually, with interest.

    Unlike a traditional mortgage, you don't have to repay the loan during the term of the reverse mortgage. Instead, you or your estate pay off the principal you borrowed and theHomeowners must be at least 62 and should either own their house outright or have paid off most of the mortgage.

    You’re reading a preview, subscribe to read more.

    More from Kiplinger

    Kiplinger5 min read
    As the Market Falls, New Retirees Need a Plan
    Anyone newly retired or nearly so must feel like they have the worst timing in the world. A portfolio tends to be largest near retirement, just before those savings are about to be drawn down. These days, however, most portfolios have lost value; the
    Kiplinger2 min read
    Tax-Savvy Charitable Giving With QCDs Can Benefit Both Giver and Receiver
    Plenty of retirees like to give back to their communities through charitable donations, but questions often arise over the best way to do that. What approach is efficient, provides the tax benefits you’re after, and also is advantageous for the chari
    Kiplinger3 min read
    I’ve Inherited a Lot of Money. Now What?
    It’s no surprise that many people who inherit millions of dollars are uncertain about what to do with their newfound wealth. The possibilities of becoming a multimillionaire overnight can be overwhelming, especially during a period when most are grie

    Related