Home Equity Vs Debt In Reverse Mortgage
Posted by admin on February 25, 2008 in Finance :: Mortgage & Debt
The reverse mortgage helps to generate cash on the home equity of the borrower. Thus, as the term of reverse mortgage advances, the home equity keeps on decreasing. On the other hand, as there are no monthly repayments, thus, the debt keeps on increasing. So, we can say that reverse mortgage is based upon the scenario in which home equity and debt are inversely proportional to each other. The debt increases with decrease in home equity.
