Reverse Mortgages

A reverse mortgage is a loan against a property that you are not required to pay back as long as you continue to reside at the property. Reverse mortgages are predominantly for retired persons with a large amount of equity in their homes that are looking to supplement their income. Dissimilar to a conventional mortgage, the loan balance increases over time, and the owed interest is added on to the balance of the loan.  Repayment of the loan is expected in the event that the property is sold or the borrower passes away.  In the case that the loan balance is less than value of the property, the borrower or related heirs will receive the difference.  However, if the heirs choose to keep the property, they are required  to pay the loan balance to the lender prior to taking over ownership of the property.