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A reverse mortgage is a mortgage product for seniors that allows them to withdraw up to half the equity from their home in tax-free payments, typically for the purpose of supplementing retirement income. Other reasons for using a reverse mortgage include home renovations, debt repayment, investment and tax purposes.
The homeowner is not required to make any monthly payments towards the loan, however interest accrues monthly and is due when the house is sold or all borrowers die.
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