A reverse mortgage is a home equity loan. It can be granted only on homes that are mortgage free. Rather than making payments to the mortgage company, the mortgage company makes payments to People. As a result, People receive monthly income based on the value of their home as long as People live, or, in some cases, for a specified number of years. The money People receive is tax free since it is a loan rather than income. At the end of the term, or when People move or die, the loan must be repaid, including accumulated interest—usually by selling their home.

At this time, reverse mortgages are not available in all states. Check with their local
banker, if interested.