What is a Reverse Mortgage
It is simply a mortgage loan secured by a residential property, that enables the borrower to access the home equity of the property. The loans typically do not require monthly mortgage payments. Reverse mortgages allow older people to immediately access the home equity they have built up in their homes, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month.