A reverse mortgage can offer an unbeatable proposition for the right person: the cash-poor but house-rich senior. The loan allows homeowners over 62 years old to tap equity without selling the home, giving up title, or taking on new monthly payments. Instead of paying off a loan every month (as with an equity line) — the homeowner collects a check.

Even if the homeowner outlives their equity, the checks keep coming and they still don’t lose their home. When the homeowner moves off the property, the loan finally gets repaid, typically through selling the house.

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