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 How Can I Choose to Receive My Money?
You can choose to receive the money from a reverse mortgage in several different ways…
- All at once, in a single lump of cash;
- as a regular monthly payment, either for life or a designated period;
- as a “creditline” account that let’s you decide when and how much available equity is paid to you;
- or as a combination of the above payment methods.
How Much Money Will I be Eligible For?
The amount of money you get from a reverse mortgage depends upon your age (or age of youngest borrower on title), appraised home value, current interest rates, and the lending limit in your area. In general, the older you are and the more valuable you home (and the less you owe on your home), the more money you can get.
What Do I Need To Do To Qualify For A Reverse Mortgage?
As long as you own a home, are at least 62, and have enough equity in your home, you can get a reverse mortgage. There are no special income or medical requirements. Bankruptcy, foreclosure and late payments are allowed.
When Do I Pay Back My Loan?
No monthly payments are due on a reverse mortgage while the home remains your primary residence. The loan is repaid when the last remaining borrower on the title ceases to occupy the home as a principal residence, whether you pass away, sell the home, or permanently move out. If the home is sold and the sales proceeds exceed the amount owed on the reverse mortgage, the excess money goes to you or your estate. If the home is sold and the sales proceeds do not cover the amount of the loan payoff, the lender cannot hold you or your heirs responsible for any shortfall.
Does The Lender Take The House?
No, this is a common misconception. The title remains in your name. Your home and any equity remaining will be passed o n to heirs. Upon vacating your home as your primary residence the loan must be repaid.
Do My Heirs Have The Right To Keep My Home?
Yes. As long as they repay the loan with any available funds or through a refinance, they do not have to sell the property.
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