Reverse mortgages let homeowners who are 62 years and older liquidate their home equity. That can be a convenient way to generate extra cash for retirees whose net worths are primarily in their homes.

However, these specialized home loans also have costs and limitations that can make them problematic. Here are the most significant pros and cons of reverse mortgages to help you determine whether they make sense for your circumstances.

Note: This guide focuses on the Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage loan and the only one insured by the Federal Housing Administration (FHA).

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