Earning income in retirement
Reverse mortgages or home equity conversion mortgages (HECM) provide refinancing and purchase options for homeowners age 62 and older. A reverse mortgage allows homeowners to borrow money against the value of their home. No repayment of the mortgage is required until the borrower dies or the home is sold. These mortgages require no monthly payments; however, borrowers are still responsible for property taxes and homeowner’s insurance. Reverse loans offer greater financial flexibility at or near retirement when income typically declines. Reverse mortgages can also decrease the need to sell other assets during downswings in the market. This product is gaining in popularity as record numbers of baby boomers look for income options in retirement.
This material is not from HUD or FHA and has not been approved by HUD or a government agency.