November 26, 2005
Reverse Mortgage Explained
Ken Chukwell
Can’t remember how many times I’ve been asked “What is a reverse mortgage”? Reverse mortgages are a great way to get a loan using your primary asset. As in all cases of financiallending, the flexibility comes at a price. A reverse mortgage is a loan using your house and is referred to as a “rising debt, falling equity” kind of deal. To compare reverse mortgage to a more traditional one, the type of mortgage commonly used when buying a house can be classed asa “forward mortgage”. To qualify for forward mortgage, you must have a steady source of income.
