How does the lending institution arrive at the amount that would be disbursed under the reverse mortgage product?
The qualifying amount of loan will depend on the realisable value of your property after maintaining a margin. This margin covers the rate of interest on the loan and any possible fluctuations in the value of the property pledged for reverse mortgage. The value of the property is evaluated every 3-5 years, depending on the lender, and this will affect the amount of funds being released to you as per the payment plan you choose.
Related Questions
- Can I prepay the amount that the lending institution disburses under reverse mortgage? Is there a pre-payment penalty?
- How does the lending institution recover the money that it has given me under reverse mortgage?
- What is the maximum payment tenure that a lending institution offers under reverse mortgage?
