What Is a Reverse Mortgage?
A reverse mortgage is a special type of mortgage loan designed for homeowners who are at least 62 years old. This mortgage lets the borrower access home equity without paying off the loan balance.
Additionally, under a reverse mortgage, the borrower does not need to make monthly payments on the mortgage. However, when the borrower no longer lives in the house, the mortgage loan must be repaid. Interest and certain fees are added to the loan balance each month and so the reverse mortgage can become expensive.
Under a reverse mortgage, the homeowner still has to pay property taxes and homeowners' insurance and keep their house in good condition.
- What Is a Fannie Mae or Freddie Mac Loan?
- What Is the Difference Between a Legal and an Equitable Mortgage?
- What Are the Requirements of a Fannie Mae or Freddie Mac Loan?
- What Are Fannie Mae and Freddie Mac?
- What Is the Difference Between Fannie Mae and Freddie Mac?
- What Is the Purpose of Fannie Mae and Freddie Mac?
- Can I Buy a Home Directly from Fannie Mae?
- What Is a Jumbo Loan or a Super Jumbo Loan?
- What Is the Difference Between a Registered Mortgage and an Equitable Mortgage?