What is meant by "Reverse Mortgage" in economics?
By mx_aman
@mx_aman (2101)
India
3 responses
@smiley20903 (495)
• United States
7 May 07
A Reverse Mortgage deals with the banking field. It is when a homeowner uses they equity in the home to live off of or do whatever they want with it. The Reverse Mortgage applies to a homeonwer who home is paid off, and they are a senor citizen. The money that they use does not have to be paid back while they are living there. However, I look at as the Bank buying back your home...
1 person likes this
@Idlewild (6090)
• United States
20 May 07
This is basically how I understand the term, too. It's a way for elderly people who have paid off their mortgages to get paid from their home ownership. So they receive money for owning a home, rather than paying out for it, hence the term reverse mortgage.
