As housing wealth continues to be a major component of retirement security, many older homeowners are turning to reserve mortgages — better known as reverse mortgages — as a way to access cash without selling their homes. While the concept can sound appealing, financial experts say it’s important to fully understand how these loans work and what tradeoffs they involve. A reserve mortgage allows homeowners, typically aged 62 or older, to borrow against the equity in their home. Unlike a traditional mortgage, borrowers don’t make monthly payments. Instead, the loan balance grows over time as interest and fees are added.

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