How is it different from a traditional mortgage?
Rather than making a payment to the lender each month, the lender can send you a loan advance each month if you choose. Unlike a conventional home equity loan, a reverse mortgage does not require any repayment of principal, interest or servicing fees as long as you live in your home. You may use the cash you obtain from a reverse mortgage for any purpose. With most home loans, if you fail to make your monthly repayments, you could lose your home. But with a reverse mortgage, you do not have any monthly repayments to make. So you cannot lose your home by failing to make them.
