Hello guys,
I have a confuse over reverse mortgage. We all know about mortgage, but reverse mortgage it listens like new. If anybody know it, then please share with me.

Thanks.
Mortgage Buyer

A reverse mortgage (or lifetime mortgage) is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).

In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term the mortgage has been paid in full and the property is released from the lender. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month.

Hello,

You have to pay the certain amount to the lender per month for a certain number of years and the lender pays you. These payments are cash advances against the value of your home. This type of mortgage is called a reverse mortgage.


Thanks a lot

Mortgage Buyers