Some might imagine the benefits of retirement to include a more relaxed schedule and fewer debts. For example, children might be grown, a house mortgage might be paid off, and retirement accounts may have vested. Why, then, are some retired Americans exploring a reverse mortgage?
For readers unfamiliar with the term, a reverse mortgage is a unique type of lending arrangement. In fact, the U.S. Department of Housing and Urban Development has a reverse mortgage program for the stated purpose of providing older Americans with greater security. Homeowners who are age 62 or older can withdraw some of the equity in their home without any obligation to make loan payments until their passing or in the event the home no longer serves as their principal residence.