If you’ve owned your own home long enough to build up significant equity, a reverse mortgage may be worth considering. Essentially, a reverse mortgage is a loan against the equity in your home where you receive the proceeds of the loan, either as a lump payment or as a monthly payment, or as a credit line or even as some combination of these payout methods.

Typically, the loan doesn’t get paid back until you die or move out of the home; it is the proceeds from the eventual sale of the home that pays back the reverse mortgage.

Is a reverse mortgage right for you? As you might suspect, the answer is “it depends.” They key question often is “do you want to leave the equity in your home to your estate or do you want to use that money now.

AARP has an excellent article on Reverse Mortgages; Senior BofI will be happy to answer any of your questions about this method of letting your home pay you. Just contact us.