Reverse Mortgages - What Is A Reverse Mortgage & How Does It Work?

So what is a reverse mortgage exacty? Well a reverse mortgage is a special kind of mortgage arrangement which is for older people that want to use the equity in the home to release some cash to them. The senior homeowner receives a payment each month for a specified period of time. The amount of the monthly payment to the homeowner depends on how much equity there is in the property.

No repayment of the reverse mortgage is made until the owner sells their home, moves or dies, the reverse mortgage is then repaid from the proceeds of the sale of the property at this time.