Understanding Reverse Mortgages
How Does a Reverse Mortgage Work?
Reverse mortgages allow a home owner to borrow equity. Instead of making payments to the lender, the lender makes payments to the borrower. Payments can be made as follows:
Who Can Qualify for a Reverse Mortgage?
Anybody over the age of 62 who owns a home can qualify for a reverse mortgage, if there is adequate equity in the home.
How Much Do Reverse Mortgages Cost?
Like with a regular loan, borrowers pay fees to get the money. These fees can be rolled into the loan and financed. Because there are no "standard charges," the fees will vary depending on the lender, third-party vendors and the type of loan selected. Basically, borrowers pay for:
How Much Can You Borrow?
The amount of loan available depends on the type of loan program selected, how much equity remains after paying off existing mortgages and the borrower's age.
Where Can You Get a Reverse Mortgage?