Retiring on a Reverse Plan
Washington Post Online (06/09/01) Vol. 12, No. 23 p.1B; Howley, Kathleen M.

A reverse mortgage is an alternative retirement solution for those without a retirement plan. Reverse mortgages allow individuals age 62 and older to borrow against the equity in their homes. In most cases, payment is not due until the borrowers' death, at which point the heirs assume financial responsibility for the house and can pay off the principal and interest by selling the home. Rates for reverse mortgages are usually on par with other adjustable rate mortgages. Some people use the loan as supplemental income for personal needs such as financing prescription drugs not covered by their insurance, or making improvements to the home.


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