Reverse Mortgage Info

A Reverse Mortage is a loan in which you are paid by a lender pays while you continue to live in your home. It is a home loan for 62 years old and older. The aim is to get cash out of their home without having to move or make monthly mortgage payments. The income from reverse mortgage can be used in the form of a lump sum, a monthly cash payment, or a credit line. There are no income or credit requirements to qualify for this type of loan. With a reverse mortgage, your debt gradually increases and your equity gradually decreases.

• Reverse mortgage loans are available for single-family homes, as well as some condominiums and manufactured homes. Reverse mortgages are not available for mobile homes or co-ops.
• You remain the owner of the home with a reverse mortgage, and you are still responsible for paying property taxes and homeowners insurance.
• During the lifetime of your reverse mortgage, you cannot rent out part of your home, add a new owner to your title, or take out any new debt against your home.
• It is usually possible to roll all closing costs and reverse mortgage lender fees into the loan.
• The amount of your reverse mortgage benefit payments depends on how old you are and how much your home is valued at.
• The reverse mortgage becomes due when the last surviving owner dies, sells the home, or permanently leaves the residence.
• When the loan terminates, you or your heirs must repay the loan plus interest, generally by selling the home.
• If your reverse mortgage debt is less than the selling price of the home, your heirs keep the difference.
• It is not possible for you to owe more than your home is worth, and your lender cannot seek payment from your