Explore the potential risks and limitations of reverse mortgages, including interest rates, maintenance costs, and foreclosure risks. Understand the essential considerations before deciding on this financial option.

Designed for homeowners aged 62 and above, a reverse mortgage is a loan secured by your home equity. It provides access to cash either as a lump sum or a line of credit, with no monthly repayments required. The loan is only repaid when the homeowner moves out or passes away, at which point the lender sells the home to recover the funds. However, reverse mortgages come with certain conditions, including the primary residence requirement and restrictions on inheritance and relocation. Higher interest rates, ongoing maintenance obligations, and the potential for foreclosure are important factors to consider. Consulting a financial professional is recommended before making a decision.