Readvanceable Mortgage

(see also reverse mortgage) A readvanceable mortgage is a mortgage designed to provide income to seniors with home equity. A reverse mortgage does not require a set payment schedule. You can make monthly interest payments if you choose, but most people opt to pay back the mortgage when they sell their home.

Once you get a reverse mortgage, even if you never make a single payment, the lender cannot take your home. Moreover, you’ll never owe more than your home is worth, even if it depreciates.

Since a reverse mortgage is a loan, the money you receive is tax-free and doesn’t affect other retirement benefits.