Reverse mortgages provide income to homeowners. Instead of reducing debt and making payments, you receive payments while increasing debt. The debt is secured by equity in your home.
One attractive feature of reverse mortgages is that it's possible to get more out of your home than you've put into it. If you're fortunate enough to live a long life, you may come out ahead.
While reverse mortgages are creative, high fees have been a sticking point. In recent months, the fees have come down. These programs may be worth another look for older homeowners who need cash.
Even though fees are lower, there are still fees. It only makes sense to pay them if a reverse mortgage makes sense. A reverse mortgage is a loan, and it can eat away your net worth if you don't really need the money.
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