Complete Definition Of A Reverse Mortgage
by admin on Oct.14, 2011, under Mortgage, Uncategorized
The definition of a reverse mortgage basically is a mortgage in which a senior homeowner aging at least 62 years , is allowed to borrow money against the value of his or her home. This type of mortgage converts into cash a part of the equity or value of the house the senior borrower owns. The fact that no amortization payments will be paid makes this financial transaction distinct from a regular mortgage. The situation is reversed and it is the lender or creditor who pays the debtor. Now, the demand of payment will be due only once certain cases occur like when the borrower dies, when the borrower sold the house, when the house is no longer use as the primary residence for 12 consecutive months, or if the borrower failed to comply to certain conditions agreed upon. This is a fast and easy way for seniors to avail of cash they may need for some important purposes.