How is a reverse mortgage different that a conventional mortgage?
With a conventional mortgage, the equity rises and the debt falls as you make regular payments and the value of your home appreciates. When you have a reverse mortgage, the debt rises and equity falls as you take the money out of the home, make no payments, and interest accrues on the amount owed. Who can qualify for a reverse mortgage? To be eligible for most reverse mortgages, you must be 62 years of age or older, have paid off your mortgage or have only a small balance remaining, and your home must be your principle residence. How much money can I expect to receive? The amount you can borrow depends on three things: your age, the appraised value and equity in your home, and the interest rate on the loan at the time of origination. If you are participating in a government program, your loan is also subject to the lending limit in your area. In general, homeowners who are older and who have a great deal of equity in their home are able to borrow the most money. How are payments made t
