Here is a brief Reverse Mortgage Review.
A traditional reverse mortgage is basically a loan against the value of your home that doesn’t have to be paid back until you sell the property, move out or pass away. A lender issues you credit, based on the value of your home (via appraisal), your age and current interest rates. It is important to utilize a Reverse Mortgage Calculator to find out if you would qualify for a loan and how much you could receive from a reverse mortgage. For example, according to an AARP chart, if your home is worth $150,000, your age is 65 and the rate on the loan is 6%, your reverse mortgage loan amount should be roughly $74,000, or half the value of your home. Generally, the older you are, the more credit you can receive because you’ll likely be able to pay back the loan faster.
You can choose to receive the loan in a single lump sum, a credit line or fixed monthly payments. The debt you inherit is equal to the loan advance plus interest.
