What is a Reverse Mortgage?

October 27, 2015 2:28 pm Published by Comments Off on What is a Reverse Mortgage?

A reverse mortgage is a unique loan available to homeowner(s) age 62 and older that uses the equity in their home to provide cash flow. The loan is called a reverse mortgage because instead of making monthly mortgage payments to a lender, as in a traditional mortgage, the lender makes payments to the borrower. The loan is not required to be paid back until the last borrower vacates the house or the borrower(s) fail to keep up on property taxes, insurance and reasonable maintenance.