July 30, 2007 -- Posted at 10:00 a.m. CST
Jonesboro, AR -- A "forward" mortgage is when you buy a house and receive from the lender a mortgage on the amount you could not pay upfront. The more payments you make, the more equity you have. Meanwhile, the mortgage amount decreases.
An opposite concept is the "reverse" mortgage - a loan against your house where the home owner receives payments against the mortgage. Because of the increase in home values in recent years, there has been more advertising and publicity about reverse mortgages. Reverse mortgages may be an option for some older adults to gain needed income later in life, but is it a sound financial decision?
To learn more about this option, you can attend the program, "Reverse Mortgages: Know the Facts", on Wednesday, August 1st, at 2:00 p.m. at the Center on Aging-Northeast, 303 E. Matthews, in Jonesboro.
Michelle Gibson, president and loan officer of The Mortgage Source, Inc. will explain how reverse mortgages work.