How Much Does a Reverse Mortgage Cost?
Reverse mortgages have become more and more popular as the baby boomer generation ages into retirement. Unlike a traditional mortgage, a reverse mortgage uses your home as collateral against a loan that you can use to supplement your income. However, instead of receiving the proceeds of the loan in one lump sum and making regular monthly installment payments back to the lender, the lender keeps the bulk of the loan proceeds and disperses them to you in monthly allotments. This allows you to use the equity in your home as a way to pay your regular monthly expenses now that your income has become more limited.
Now, before you decide that getting a monthly check in the mail is much better than sending one out, it’s important to note that reverse mortgages are a special type of loan program that is designed to target a specific portion of the population.