Deferred-payment loans are made to a homeowner for a specific purpose, such as modernizing, repairing or weatherizing the house. They usually carry low interest rates and repayment is not due until the owner dies or the house is sold. A number of variations on deferred payment loans have been described that do not offer cash hut charge off certain expenses as a lien against the property.
Home-equity conversion plans have a great deal of potential for benefiting older homeowners. On the other hand, they are highly complex and contain potential hazards. Because they are both new and complicated, they are not thoroughly understood by many financial, legal and real estate professionals.
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