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What is a Reverse Mortgage?
A reverse mortgage is a type of consumer loan that is becoming increasingly popular among seniors aged 55 and up. It enables these senior homeowners to access their accumulated home equity. Although there are no monthly mortgage payments, homeowners must still pay property taxes, insurance, and maintenance. The loan is not repaid until the homeowner passes away, sells the house, or moves out. Because there are no monthly mortgage payments and homeowners can usually receive their home equity as tax-free cash, it is a good investment. Over 1,000,000 seniors have taken advantage of this type of loan.
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