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What is a Reverse Mortgage? |
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With a reverse mortgage, the lender makes a monthly payment to the homeowner who later repays in a lump sum. The reverse mortgage can be valuable for an elderly homeowner who does not want to sell, but whose retirement income is not quite enough for comfortable living. The homeowner receives a monthly check, has full use of the property, and is not required to repay until he sells or dies. If the homeowner sells their home, money from the sale is taken to repay the loan. If they die first, their property is sold through the estate and the loan repaid.
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