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Why the word “Reverse Mortgage” is used in Reverse Mortgage scheme?

April 26, 2017reverse mortgage Scheme Used word

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Why the word “Reverse Mortgage” is used in Reverse Mortgage scheme?

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In case of conventional mortgage loans, the borrower makes monthly repayments (EMIs) to the lender during the currency of the loan ie cash flow is from borrower to lender. On the other hand in the case of a Reverse Mortgage Loan (RML), the flow of cash stream is reversed and the lender makes periodic payments to the borrower during the currency of the RML, against the mortgage of the residential property. Hence the term ” Reverse Mortgage”.