In a typical mortgage, the property owner makes a monthly payment to the lending institution. After each settlement, the home owner's equity boosts by the amount of the principal included in the repayment. In a reverse mortgage, a homeowner is not called for to make regular monthly settlements. If payments are not made, interest is included in the financing's equilibrium. Although the "increasing financing equilibrium could ultimately grow to exceed the value of the residence," "the borrower (or the customer's estate) is generally not required to pay back any added loan equilibrium in excess of the value of the home.".
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