A reverse mortgage is quite a complicated concept but a very useful resort for many seniors. In this type of mortgage, there are no monthly payments. All interests are added to the lien, i.e. the mortgage. After the owner dies, sells the property or leaves it, the whole debt must be paid together as one big sum or in multiple payments. There is a long list of reverse mortgages pros and cons. Let's discuss reverse mortgages pros and cons briefly and straight to the point.
An advantage within reverse mortgages pros and cons is that the payment of the lien is deferred. A disadvantage within reverse mortgages pros and cons is that the borrower ends up paying more than he should since interest rates are subject to change.