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Information Reverse Mortgage

Answers and information on common questions regarding reverse mortgage programs.

Do I have to sell my home to pay off loan
No, you are not required to sell you home to pay off loan. Though this is your option, and any money left over after the sale of your home, over and above the money required to pay off the reverse mortgage would be transferred to you or your estate.
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Can I get monthly installments for my cash in reverse mortgage
Yes you can. You can take and receive cash for your equity in a reverse mortgage in a few different ways. You can get all you money up front and in hand. You can set up to receive a monthly payout or installment. This works great to increase cash flow. You may also take fund through mortgage as a credit line and use proceeds as you see fit. This works like a giant credit card or checking account, where you simply make payable a draft check whenever and to who ever you feel neccessary.
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How big of a mortgage can I get
The amount of money you borrow depends on how old you are. The further on in age you are the more you can borrow, or the higher the loan to value will be in the reverse program. The minimum age requirement is 62 years, so someone 82 may qualify for a larger mortgage loan amount.
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Is there interest charged to me for this type of mortgage
Yes, and the mortgage loan rate is determined by the particular program you choose, and current market conditions. The interest charged for the loan will accumulate on the "Back of the Loan" or in other words will be added to the original loan balance.
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How much will I owe on reverse if I decide to pay off home
If you decide to pay off your home, you mortgage payoff will include the total amount you borrowed up front, plus any installments you took throughout the loan. It will also include interest due, and any payoff fees which are standard to any mortgage payoff.
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Will my child ern be responsible for this mortgage
Not in most cases. Your reverse mortgage is based on a "Loan To Value". In the event that you pass and the mortgage is not refinanced or paid off before hand, or your surviving children do not payoff mortgage through refinance or cash buy. The home will be sold by lender and any proceeds will be transferred to your estate. In the event that the home sells for less than is owed on the home, the deficiency balances can be attached to your estate, it just depends on the particular state laws.
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What loan to value can I get
The maximum loan to value you can receive in cash is dependent on your age. As a rule, which can vary by state. A borrower of the age of 62 could get 25% of the value of his or her home. Where as a borrower who is 85 years old could borrow up to 65% of the value of the home.
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Helpful Information

Reverse Programs