Reverse mortgages can be helpful to those later in life and can bring income to senior citizens that own a home. Homeowners old enough to qualify for a reverse mortgage loan may be able to do a variety of things from pay off their mortgage and get rid of their mortgage payment to simply having extra money for various expenses.
Keep in mind though, a reverse mortgage is a form of debt that will have to be paid back, but as long as the homeowner that takes out the reverse mortgage stays in their home and pays their property taxes, they will never have to pay the loan back themselves.
A reverse mortgage is money given based on equity in your home, and it is a loan that draws interest, but the money given to the homeowner is beneficial in a variety of ways, like getting rid of a mortgage payment. If you have more equity in your home than you owe on your mortgage, and you get a reverse mortgage that provides enough money to do so, you can pay off your mortgage and you will no longer have a monthly mortgage payment.
Again, a reverse mortgage is still money owed and most commonly the funds are recouped from the homeowners estate when they pass away. However, the big key in this aspect of a reverse mortgage is, does the homeowner want that debt left when they are deceased? It could leave any heirs with no home to inherit, but usually a reverse mortgage will not be that costly, unless the homeowner borrows a high amount.
So, if you are looking into a reverse mortgage do your homework and weigh the pros and cons before proceeding. A reverse mortgage can be helpful, but make sure it is right for you.