Q. How are reverse mortgages different from a regular loan?
A. In a regular mortgage, you make monthly payments to the lender.
But in a reverse mortgage, the lender makes payments to you.
In short, the difference between a regular loan and a reverse loan is that in a regular loan all of the proceeds are usually given to the homeowner at the time the loan is taken out and the homeowner pays back the loan over time.
In a reverse loan, the lender may pay the homeowner over time and the lender is repaid when the home is sold.
Sept. 26, 2005