Intro to Reverse Mortgages Denver

Reverse Mortgages, Denver CO - A reverse mortgage is a loan available to seniors (62 and over in the United States), and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves.

In a traditional mortgage the homeowner makes a monthly payment to the lender and at the end of the term (e.g. 30 years) the mortgage is considered to be paid in full. The property is released from the lender and turned over to the homeowner. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.

If a property has increased in value after a reverse mortgage is taken out, it is possible to acquire a second reverse mortgage over the increased equity in the home. But in some countries (including the US), a reverse mortgage must be the first and only mortgage on the property.

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