Articles

6 Most Commonly Asked Reverse Mortgage Questions

How does a reverse mortgage work?

A reverse mortgage allows seniors to access their home's equity. Lenders pay the homeowner—and the homeowner has no payments due as long as he or she remains in the home.

The following are the six most frequently asked questions regarding how a reverse mortgage works:

Will I still own my home?

Yes. You remain the owner of your home, not the lender.

What are my options for receiving payments?

There are several options for receiving payments which can include:

• Guaranteed monthly payments for a specified term or as long as your home remains your primary residence
• A line of credit to draw from as needed
• Lump sum payment
• Combination of the above

Is the reverse mortgage safe?

Yes. The federal government strictly regulates reverse mortgages. You can never owe more than the home is worth, and your benefits are guaranteed as long as one borrower occupies the home.

Will this loan affect my Social Security and Medicare Benefits?

No. Your reverse mortgage payments do not affect Medicare or Social Security benefits.

How much money can I get for my home?

The size of the reverse mortgage depends on your age at the time you apply, the type of reverse mortgage you choose, the value of your home, and current interest rates.

How much cash can I get?

The amount depends on your age and the value of your home.

Read Reverse Mortgages Explained for more information about the benefits of a reverse mortgage, common uses of loan proceeds and to find out about basic qualifications.

Posted in: Reverse Mortgage, Reverse Mortgages, Reverse Mortgages as an Option

Rate this article:

Please Visit Our Sponsor