A reverse mortgage allows you to withdraw equity from your home. Many seniors use the money to pay for medical expenses, living expenses and financially support themselves throughout retirement.
Be a homeowner age 62 or older and live in the home.
Own you home outright or have a mortgage low enough that it can be paid off at closing with a portion of the money you will get from the reverse mortgage.
Be able to financially continue to pay for your property taxes and homeowners insurance.
There are other qualifications but these are the basic ones to consider if you are looking into getting a reverse mortgage.
What are some other details about a reverse mortgage that I need to know?
With a reverse mortgage the borrower does not need to make monthly payments on the principal and interest-it pays you. You are still required to pay real estate taxes, utilities, and your homeowners insurance. You are also required to keep up the home in livable condition and to make repairs when necessary.
How much money can I get from a reverse mortgage on my home?
What happens to my home after I pass away?
Upon the death of the borrower, or if the borrower decides to move to a different location, the bank holding the reverse mortgage will need to be repaid the amount of money it has dispersed to the borrower. This can be done through the sale of home or the repayment of the amount borrowed in cash. There are other avenues, so ask your loan officer what your options are for what will happen to your home.
How will I receive the money from my reverse mortgage?
Your options for receive disbursements from your reverse mortgage loan will vary from lender to lender and depend on the loan amount.
-Term payments: You will receive equal monthly payments for a fixed period of time chosen at the time of the loan.
-Tenure payments: You will receive equal monthly payments for as long as at least one borrower is alive and living in the property.
-Line of credit payments: These are installments or unscheduled payments which you can decide to take at any time and amount that you need until the funds run out.
-Single Disbursement: You will receive a single disbursement at the mortgage closing and it is up to you to budget and use as needed. You cannot receive additional disbursements or payments in the future on the same loan.