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How do reverse mortgages work?

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A reverse mortgage is a type of loan that's reserved for seniors age 62 and older, and does not require monthly mortgage payments. Instead, the loan is repaid after the borrower moves out or dies. read more

How Does a Reverse Mortgage Work A reverse mortgage is a loan made by a lender to a homeowner using the home as security or collateral. With a traditional mortgage, the homeowner uses their income to pay down the debt over time. read more

A reverse mortgage allows them access to ready, tax-free cash without selling their homes, and without the burden of monthly payments. The number of reverse mortgages has recently seen a phenomenal increase from 18,000 in 2003 to more than 107,000 in 2007 [source: U.S. Department of Housing and Urban Development]. read more

When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity. read more

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A reverse mortgage is available to anyone who is at least 62 years old and owns a home outright, or has a small mortgage balance remaining.
Source: quotemaster.org