How Do You Get A Reverse Mortgage

A reverse mortgage is a loan for senior homeowners that allows borrowers to access a portion of the home’s equity and uses the home as collateral. The loan generally does not have to be repaid until the last borrower no longer occupies the home as their primary residence. 1 At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to.

A reverse mortgage loan allows seniors to liquidate the equity in their homes for cash without selling the home or incurring a monthly loan payment. The money can be used to supplement an income, make a purchase, or cover upcoming expenses.

The amount of money you can get with a reverse mortgage varies greatly from person to person. Variables include your age, property value and mortgage balance. These all play a role in determining how much of your home value you will be able to access. The fastest way to estimate your reverse mortgage loan amount is to use a Reverse Mortgage Calculator:

How do Reverse Mortgages Work? When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity.

Basics Of Reverse Mortgages A: For retirees who own their home and want to stay living there, but could use some extra cash, a reverse mortgage is a viable financial tool. But there’s a lot to know and consider to be sure it’s a.

However, if you get an adjustable rate loan, you can choose to get your proceeds in a lump sum payment, monthly distributions, a line of credit, or any combination of the three. Using Your reverse mortgage proceeds. No matter how much you get from your reverse mortgage, you can use the money for anything.

Reverse Mortgage Eligibility. The basic requirements to qualify for a reverse mortgage loan include: the youngest borrower on title must be at least 62 years old, live in the home as their primary residence and have sufficient home equity. Borrowers must also meet financial eligibility criteria as established by HUD. The amount you can access.