What is Reverse Mortgage?

The reverse mortgage is a very special type of mortgage mostly seniors can apply for it. This means that a person receives a loan for a house and that house will be put up as collateral. This mortgage will be paid of only when the person dies or changes residence or sell off the house. If the person dies the beneficiaries can pay off the mortgage and use the house how they want to. The drawback of this type of mortgage is that it has big set up cost, it’s usually higher then the ones that other mortgages are using. The positive side is that it’s not hard to obtain and the lender won’t look at the credit history of the borrower.