giraffelending – Financial Security

In the case of a conventional mortgage, borrowers obtain financing at the time of purchase and make monthly principal and interest payments until the loan is paid in full. Thanks to your timely payments, your equity grows as the loan balance falls. Of course, reverse mortgages are unlike traditional home equity loans in that the lender doesn’t get their money back until the borrower sells or otherwise leaves the property.

When you take out a reverse mortgage, you won’t have to worry about making regular payments. Maintaining homeowners insurance and property taxes is still your responsibility. Moreover, unlike a standard mortgage, the loan balance typically increases rather than decreases over time as interest and fees are added to the principal sum each month.