What is a reverse mortgage?

A reverse mortgage is a financial tool used by seniors to access money in their home equity without giving up ownership of their home. It is an often-overlooked option for seniors in Florida who are looking for a way to supplement their retirement income. A reverse mortgage works by allowing homeowners, over the age of 62, to convert a portion of the equity in their home into a lump sum or monthly payments, without having to make monthly loan repayments. This income source is not taxable, and the loan does not need to be repaid until the borrower passes away, moves, or fails to meet the requirements of the loan. In Florida, reverse mortgages are insured by the Federal Housing Administration (FHA) and can only be taken out on a primary residence. Before signing up for a reverse mortgage, it is best to consult with a financial advisor or elder law attorney to understand all of the potential pros and cons. Reverse mortgages can have many advantages for Florida seniors, including providing additional income to cover medical expenses, supplement retirement income, or pay for major home repairs. However, it is essential to understand any fees associated with taking out a reverse mortgage, as well as the restrictions and eligibility requirements.

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What is a reverse mortgage?

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