What is reverse mortgage?

What is reverse mortgage?

Answer (1)

Team Legistify

  • Sector-1, Noida

When you buy a house through a home loan, every EMI you pay towards servicing the loan increases your equity in the house. Once you payoff the loan in full, your equity in the house is 100 per cent. In reverse mortgage, exactly the opposite happens. When you pledge your house for reverse mortgage with a lending institution, your equity in your own house decreases with every disbursal that the lending institution makes to you.

Answered on 28 Sep 2018


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