how does a reverse mortgage work ?

how does a reverse mortgage work?

Reverse Mortgage is one of the popular ways to get out the home equity and use it in time of dire needs. This is very impotent to know how does a reverse mortgage work.Reverse mortgage provides a steady flow of tax-free income. By the way you can get the money on monthly basis or one time lump some amount. This is just the contrary of the tradition mortgage.

Interest rates of Reverse Mortgage:

Reverse mortgagee are mostly adjustable rate mortgage and the rate changes on monthly basis or quarterly basis. And the closing cost is also a bit higher than the traditional mortgages. Reverse Mortgage may also affect your eligibility for Medicaid benefits. But this is a non-recourse loan and this is tax free. So this is actually a helpful way to pay off a huge debt or someone's education fees.