Annuity Payments

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January 1, 1 6 min read Definitions

Reverse Mortgage Negative Amortization Nonrecourse Loan Elderly Homeowners Home Equity Annuity Payments

A Reverse (Annuity) Mortgage is a type of mortgage designed primarily for elderly homeowners with substantial equity in their homes. The lender periodically pays an amount to the borrower, with the loan balance increasing over time due to interest and periodic payments, ultimately resulting in negative amortization. The nonrecourse loan is repaid from the proceeds of a future sale of the home.