7/3/2014 3:36 AM (PST)

A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage is required until the borrower dies or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the https://personalmoneynetwork.com/">loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan. For the past decade, a growing number of seniors have been getting reverse mortgages, meaning a lender essentially buys the house from the owner. More people have been getting reverse mortgages, including younger homeowners. Reverse mortgages, often marketed on television, are a financial product only accessible to elderly people who own some or all of the equity in their home. However, some believe that an excellent convenience of abuse is built into the product.