Reverse Mortgage

I have had numerous people ask me about a reverse mortgage which enables elderly homeowners, typically who are low in cash, to tap into their home’s equity without selling their home or moving from it. Specifically, a lending institution makes a check out to you each month, and you can use the check as you want. This money is really a loan against the value of your home; because the money that you receive is a loan, the money is tax-free when you receive it. The downside of these loans is that they deplete your equity in your estate, the fees and interest rates tend to be on the high side, and some require repayment within a certain number of years.