How does a reverse mortgage work?

April 30, 2014

With a reverse mortgage, there are no monthly mortgage payments from you.  As one of your most important assets, your home usually holds a certain amount of equity.  Because of this equity, when the time comes someday for the loan to be repaid, the value of the home when sold is able to re-pay the loan.  Meanwhile, you are able to live in the home for as long as you like without making monthly mortgage payments. Your only obligations as a borrower are to continue to pay taxes and insurance on the home, keep it in good condition and comply with the other loan terms. Here are additional details on how a reverse mortgage works.

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