Chances are, you have actually seen commercials boasting the benefits of a reverse home loan: "Let your house pay you a monthly dream retirement income!" Sounds great, best? These claims make a reverse home loan sound practically too excellent to be real for senior house owners. However are they? Let's take a more detailed look. A reverse mortgage is a type of loan that utilizes your home equity to provide the funds for the loan itself.

It's generally a chance for retired people to take advantage of the equity they've developed over numerous years of paying their home loan and turn it into a loan for themselves. A reverse mortgage works like a routine home loan in that you have to use and get authorized for it by a lending institution.

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