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Is a Reverse Mortgage Right for You?

If you are nearing retirement age, you may be wondering how you will be able to maintain your lifestyle once your working days are done. It turns out that your home could be the answer.

Homeowners who are 62 or older may want to consider a reverse mortgage, which allows seniors to convert their home equity into cash they can use to fund their lives.

With a reverse mortgage, homeowners use their converted home equity to pay off their existing mortgage and can use the additional money however they choose. The loan does not need to be paid back until the homeowner sells the home, moves out, or passes away.

There are a lot of advantages to a reverse mortgage, but it’s important to talk to a loan officer to figure out if it’s the right decision based on each person’s situation, according to Lorraine Geraci, Reverse Talent and Development Manager at New American Funding.

“The longer you keep a reverse mortgage, the more beneficial it is to you and your family members, because it breaks up and sustains the opportunity for you to use that over a period of time,” Geraci said.