What is Reverse Mortgage?
Before you engage in a reverse mortgage, you should know what it really means. Here are some of the facts about reverse mortgages: A Look at Traditional Mortgages Mortgages have assumed a number of people from the time of their introduction. Traditional ones used to be of the repayment form. Every month, the mortgagor used to pay a particular amount of both principal and interest. Sensing the hardships that people have to face in making these payments, providers emerged with interest-only mortgages. The Existence of Reverse Mortgages These days the customer is more pampered. He needs a loan where he takes pleasure of the cash, but is not required to pay a single penny towards the repayment. A reverse mortgage is an ideal answer to such needs. It allows a property owner to plough the equity in his house to get cash. Whilst the borrower enjoys money on the mortgage, he is free of any monthly payments. The amount of loan received on this type of mortgage will rely on the age of the loaner and the value of the house. The borrower should meet two things in order for him not to repay the loan. First, he should dwell in the residence. Second, he should reside on it for as long as he lives.