A reverse mortgage is named as such because it reverses the traditional mortgage payment structure. In a conventional mortgage, the homeowner makes monthly payments to the lender to pay down the loan balance over time. However, with a reverse mortgage, the lender provides payments to the homeowner, either as a lump sum, monthly installments, or a line of credit.
This arrangement allows older homeowners, typically aged 62 or older, to access the equity they’ve built up in their homes without having to sell or move out. The funds received are tax-free and can be used for any purpose, whether it’s covering daily living expenses, home repairs, or medical bills.
The reverse mortgage helps homeowners maintain their financial stability while continuing to live in their homes. Unlike a traditional home equity loan or second mortgage, no repayment is required until the homeowner moves out, sells the home, or passes away.
At that point, the loan balance, which includes the borrowed amount plus interest and fees, becomes due. This financial product is designed to provide seniors with a way to supplement their income during retirement while retaining ownership of their property. The term "reverse" simply highlights the inverted payment flow compared to a standard mortgage. Read more here https://buff.ly/BpedCMX
Reverse Mortgage - What Is A Reverse #Mortgage? #FrizeMedia #money https://buff.ly/BpedCMX