What is a reverse mortgage?

A reverse mortgage is a loan available to people over the age of 62 in Washington State that allows them to access the equity in their home. This type of loan works differently than a conventional mortgage. It does not require monthly payments as the loan does not need to be repaid until the homeowner passes away, sells the home, or moves out. Instead, the loan is secured by the equity in the home, and the homeowner receives money from the lender in either a lump sum or regular payments. The lender charges a fee for the loan, and the homeowner is also responsible for paying taxes and insurance on the home. In addition, the lender has the right to demand the loan to be repaid in full if the homeowner fails to meet the requirements of the loan. Reverse mortgages can be a helpful tool, especially for older Washingtonians who are living on a fixed income and need additional funds to supplement their income. They can also help seniors stay in their homes longer, since they do not have to worry about making regular mortgage payments. However, it is important to do research and understand the terms of the loan before signing. A good idea is to discuss the reverse mortgage option with a financial advisor or an elder law attorney.

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What is a reverse mortgage?

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