What Is Negative Amortization And How Does It Work With Reverse Mortgages?

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Negative amortization is the process of how a mortgage balance increases over time instead of decreasing.

Negative amortization is the process of how a mortgage balance increases over time instead of decreasing. Reverse mortgages do not require any payments
to be paid on a monthly basis. However, since a reverse mortgage is not free money, the homeowner is still charged interest (and mortgage insurance
in the case of FHA reverse mortgages), and these charges are added to loan balance increasing the balance to be eventually paid when the last homeowner
permanently leaves the home.

How Negative Amortization Works on Reverse Mortgages [DOWNLOAD]

Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

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