Reverse mortgage

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Title: Reverse mortgage

Essay Details:

Subject: Miscellaneous

Author: Julia C

Date: April 5, 2016

Level: University

Grade: B

Length: 20 / 5967

Essay text:

It is a type of loan used by older consumers as a way of converting their home equity into cash flow while retaining ownership and possession of the property. The reverse mortgage is aptly named because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you. Eligible property types include single-family homes, manufactured homes (built after June 1976), qualified condominiums, and townhouses. The source of funds for the money received is the equity in the home owned by the borrower. Unlike the loan balance of a conventional mortgage, which becomes smaller with each monthly payment, the loan balance of a reverse mortgage grows larger over time...

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