Explain Reverse Mortgage In Simple Terms


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There are three kinds of reverse mortgages single purpose reverse mortgages offered by some state and local government agencies as well as non-profits proprietary reverse mortgages private loans and federally-insured reverse mortgages also known as Home Equity Conversion Mortgages HECMs.

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A reverse mortgage is a rising debt falling equity loan since you are taking money out of your home and since you make no payments the balance goes up and your equity goes down But as with either loan you always own the home and any equity in the property belongs to you or your heirs.

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