Reverse Mortgage for Seniors

A reverse mortgage loan is one option that may deserve consideration as retirement needs grow and savings and Social Security benefits may not be enough to retire on comfortably and with confidence.

A reverse mortgage is a type of home equity loan for seniors age 62 and older that is used to turn a portion of their home equity into cash. Is this financial planning tool right for you?

Seniors are pitched the benefits of a reverse mortgage as a way to "unlock" the equity in their home. However, what happens when they need a higher level of care, can no longer live in the home or try to qualify for Medicaid?

More seniors are turning to reverse mortgages as a way of receiving supplemental income in retirement and covering the costs of aging in place. As with any financial strategy, it’s important to consider the benefits and drawbacks very carefully.

Home care payment options include Medicare and Medicaid plans, but VA benefits and long-term care insurance may also help pay for care.

Most seniors cover assisted living costs with savings, Social Security, retirement funds, and home equity. Some government programs and financial tools may help, too.

For some homeowners, a reverse mortgage may be the best way to provide retirement income or pay off debts. However, seniors have other options that may make more sense than a reverse mortgage, depending on their goals and financial situation.