Reverse Mortgage

Reverse Mortgage

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Reverse Mortgage

Reverse Mortgage definition:  A reverse mortgage is loan with a guaranteed income arrangement for homeowners.  The homeowner receives a guaranteed payment for life (or until the home is sold). The loan must be repaid with interest at the end of the homeowner’s life, presumably from the sales proceeds of the home. Because of the associated loan origination fees, home appreciation rates, and interest rates, this can be a risky venture.

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