TAPPING THE EQUITY OF OLDER HOMEOWNERS WITH REVERSE MORTGAGES.

This article discusses the use of reverse mortgages in order to meet the income needs of older homeowners in the U.S. The reverse mortgages allows owner to borrow against the equity in their residences and defer repayment. The important variables for reverse mortgages are loan duration, borrower eligibility, repayment schedule, interest rate, size of loan and disclosure requirements. Reverse mortgages and the tax exclusion require minimum ages for eligibility, the tax exclusion also has an explicit home-use requirement.