Loan Mortgage Amortization
With the Baby Boom in full swing, everyone is looking for a way to sell to this aging customer base. Mortgage companies were posed with a problem: Baby Boomers were paying off their loans. They needed a way to get Baby Boomers back into the game. Enter the Reverse Amortization Mortgage.
What is a Monthly Reverse Amortization Mortgage?
Reverse Amortization Mortgages work with the equity a homeowner already has. Essentially, this mortgage pays the homeowner a set amount of money for life based on the amount of equity they have. It’s very much like an annuity you might set up with a life insurance company. In that transaction you would pay the company $30,000, then they would give you $2,000 a year for 20 years. Instead of paying the $30,000 upfront, with a reverse amortization mortgage you refinance your house and pay it from the equity you have in your home.
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