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Reverse Mortgage Basics – A Framework for Analysis

posted Jun 24, 2014, 9:21 PM by Bryan Berson   [ updated Sep 13, 2014, 4:24 PM ]

A. The Difference between Reverse and Forward Mortgages

A reverse mortgage is a loan secured by your home. It is a source of funds for homeowners who are 62 or older and who meet certain conditions. Under the terms of a typical reverse mortgage, a borrower’s debt increases and equity decreases. If the appraised value of the home rises rapidly, the equity may increase, but one cannot rely on this occurring.

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