| When a senior has paid his usual mortgage, which is | | | | depends on the age of the borrower, on the |
| now in the form of the home equity, the reverse | | | | appraised value of the home and on the interest rate. |
| mortgages do it another way round. So a senior does | | | | The older the borrower, the more valuable the home |
| not pay anything to the lender, but the lender will | | | | and the lower the interest rate, the more he will get. |
| pay to him according to the schedule he has decided. | | | | However, there is a ceiling of $ 625.000. |
| 1. Who Can Qualify? | | | | 3. How Many Borrowers Are Accepted? |
| The qualification is very flexible. Everybody, who | | | | Three is the maximum amount. Of course all |
| owns a home, where he has equity left and is at | | | | borrowers must be in the title, i.e. owners and to fulfil |
| least 62, can qualify. The lender, which is normally a | | | | the qualifications, i.e. to be at least 62. But they do |
| bank, is not interested about the credit information | | | | not have to be relatives to each other, so all owner |
| nor the income levels. | | | | combinations are accepted. |
| The reason is simple. The reverse mortgages are | | | | 4. Does The Home Ownership Change? |
| always taken against the equity of the home, so the | | | | Some seniors seem to think, that the lender can get |
| home is the guarantee. And because nothing will be | | | | the ownership from the borrower. This is not true. |
| paid back monthly, it does not matter, what are the | | | | The reverse mortgages are like whatever loans, |
| incomes. The loan capital, interests and all expenses | | | | which have certain guarantees. Only if a senior does |
| will be paid back, when the loan will be closed and the | | | | not take care about the insurances and the property |
| home sold. | | | | taxes, the lender can force to sell the property to be |
| 2. How Much You Can Get? | | | | able to get his share. |
| A wise guidance is, that do not take more than what | | | | 5. Who Can Guide? |
| you necessarily need. Generally speaking the amount | | | | |