This is a type of mortgage for people over 65 years of age. The homeowner provides his home as collateral for the loan, but the agreed amount is lent in monthly installments.
The homeowner receives a fixed amount each month. The reverse mortgage is a fixed interest mortgage loan for life, since it includes an insurance that will pay the rent until the owner's death, in case this occurs beyond the usual life expectancy.
Therefore the debt is not due until the owner's death, and the owner retains ownership of the house until then. The owner may pay off the debt before that time if he so desires, repaying the money borrowed up to the day of cancellation.
Related terms
Creditor | Repayment | Credit | Debt | Deposit | Debtor | Euribor | Mortgage | Mixed interest rate mortgage | Variable interest rate mortgage | Foreign currency mortgage | Subprime mortgage | Interest | Loan | Interest rate