A reverse mortgage involves a secured loan which gives the lender an interest in the unencumbered value of your home (being the market value of your property, less any debt secured against that property), commonly known as the “equity” in your home. Accessing funds through this type of loan is used by some retirees as an alternative to downsizing.
How it works
Put simply, under a reverse mortgage loan a lender agrees to advance money to you in consideration for an interest in the equity of your property, proportionate to the loan amount. [...]
