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In life, people make many plans about doing the right things. Many people spend considerable amount of time in planning their future. All around the world, people plan a lot for their retired life. People work hard all their life to get good job with good pay in order to secure their life and that of their loved ones.One has to prepare for the challenges of retired life as life changes a lot after retired life. The main concern is that cash inflow stops after retirement.Many people depend on others after retirement. All people expect that he or she should spend retired life with full respect and without taking any help from anybody. But the monthly income stops after retirement. In the United States of America, there is a facility called reverse mortgage loan which helps elders to live their retired life according to their choice. This is very helpful to senior citizens.

Reverse mortgage loan is not a new concept in the United States of America and it was introduced in the U.S. twenty years ago. Reverse mortgage loan is designed for citizens of America who are sixty-two years of age or more and this loan is usually used to give the home equity of the property as a lumpsum amount or in parts. The owner of the property can repay the loan until he or she dies and the house is sold after the death of the borrower or if the owner leaves the house. The lender gets the returns when the property is sold.

Traditional mortgage loan and reverse mortgage loan are different. In a traditional mortgage loan, the borrower cannot continue staying in his house that he has put up as a mortgage to the lender while in a reverse loan the borrower can continue living in his house that has been put up as a mortgage to the lender. Another difference is in the monthly repayment. In a traditional mortgage loan, the borrower has to pay monthly installments of the loan amount while in a reverse mortgage loan,the interest is got from the selling of the property. The reverse mortgage loan started to gain popularity among the senior citizens three years back, although it was introduced in the U.S. twenty years ago.

There are some conditions to be satisfied before one applies for a reverse mortgage loan. The first requirement is that the borrower has to be of sixty-two years or more.The second requirement is that the borrower has to have a house of his own. The reverse mortgage loan is of great help to senior citizens as it gives them financial security and can live a life according to their own wish.