Reverse mortgage is just the opposite of the mortgage we normally go for. In the case of mortgaging your property you continue to receive an EMI each month till the time you stay in that place. In the case of reverse mortgage your debt increases as with each passing year both your principal and interest increases with each EMI that you receive from the bank.
The loan is not required to be paid back and after the end of the mortgage period the property is acquired by the bank which is used for recovering their loan amount and interest. One could either take lump sum or fixed monthly installment or set a credit line.
This is a good option for old people who despite having a place to stay do not have enough money to pay their day to day expenses and this is a blessing in disguise for them as the bank gives money to them and after their death takes over the property in order to recover their money back.
