REVERSE MORTGAGE

A mortgage against the house which does not require payment as long as the person is living there is called a reverse mortgage. When you take a reverse mortgage, the lender gives you money every month. But there should be enough equity on the house to get this facility over a span of 20 to 30 year term. The term remains the same as in a regular mortgage.

The majority of people who take reverse mortgages are older people, who have lived in their houses for a long term and have enough equity to make it worth their while. They use the money to supplement retirement income. To pay back the mortgage, the sale of the house or the refinance comes handy.