Reverse mortgages: a tool, not a trap — if you read the fine print
Used carefully, home equity can supplement retirement income. Used carelessly, it can cost your family the house.
By David Okoro6 min read
A reverse mortgage lets homeowners 62 and older convert home equity into cash without monthly mortgage payments. Used carefully, it can be a legitimate retirement-income tool. Used carelessly, it can jeopardize the very home it draws from.
Read before you sign
- You remain responsible for property taxes, insurance, and upkeep.
- Fees and compounding interest can erode equity faster than expected.
- The loan generally comes due if you move out or sell the home.
About the author
David Okoro
Health Coverage Writer
David covers Medicare enrollment, plan comparison, and the annual decisions that quietly determine what older households pay for care.
