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So do you think of retirement? One factor you need to learn and observe a reverse mortgage even if you do not use it now.

What is a reverse mortgage? It is a credit, is the opposite, or the opposite of a standard mortgage loan.

With a normal mortgage, and borrow money using your house as collateral. Your monthly payments. How your payments, your debt amount and your equity increases. Equity is the difference between what your home is worth and how much you owe on your mortgage.

With a reverse mortgage, you borrow money and use your home as collateral. But you have no monthly payments. Since you do not make payments as time goes by, your home and your debt amount is equity. This is the opposite of a standard home mortgage.

Why should anyone, especially a high homeowner, want a reverse mortgage? Because there is a possibility of money now or in the course of time without the monthly payments are due.

Reverse mortgages can be used (1) to a lump sum of money for a specific purpose such as repairs, (2) to obtain, as the monthly payments to supplement your retirement, and (3) to a source of money in the event of emergency. Each of these three payment methods you can use in your retirement.

A reverse mortgage is not paid until the senior homeowner keeps the life in the home because he or she can sell the house, or died. In fact, there are no monthly mortgage payments, the senior homeowner does not have to worry about foreclosure, even if the debt the value of the home.

I know it sounds too good to be true, money, and no monthly mortgage payments. But it is true.

Unfortunately, not all conditions for a reverse mortgage loan. A borrower must be 62 or older. The borrower must own their home and the home must be either free of a mortgage or paying the mortgage must be small. The borrowers income or lack of income is not a factor.

This is only general information. If you have questions about reverse mortgages, talking with a mortgage lender, and if you have legal questions, in conversation with an attorney licensed in your state.

These articles may be published, but the wording must not be changed and the author links must remain active.

Stop! Would not you like to know if a reverse mortgage is right for you? Click here for more information on a Reverse Mortgage. And click here for more information about the disadvantages of Reverse Mortgages.