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Mortgage |
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A
special type of loan used to convert the equity in a home into cash.
The money obtained through a reverse mortgage is usually used to provide
seniors with financial security in their retirement years.
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The
reverse mortgage is aptly named because the payment stream is reversed.
Instead of the borrower making monthly payments to a lender, as with
a regular mortgage, a lender makes payments to the borrower. While
a reverse mortgage loan is outstanding, the borrower owns the home
and holds title to it and does not make any monthly mortgage payments.
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