Reverse Mortgage
Reverse Mortgage is a type of mortgage where borrower has no repayment obligation to the lender until he deceases or he sells the house. As in other mortgage contracts, the loan amount will not exceed the value of the mortgaged property and there is often a clause that no other liens against the property is allowed.
In the case of reverse mortgage, credit power of the borrower is irrelevant, since there are no required payments to be made during the credit period, which is a significant advantage. On the other hand, comparing to other types of mortgages, reverse mortgages have large initial costs, which are part of the original loan
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