Reverse Mortgage Loan

Although reverse mortgages have ben available for quite a while now, it is just recently that more people are finding out about them and how beneficial they can be.

Basically, a reverse mortgage is is the opposite of a regular mortgage, instead of getting a loan to purchase a home, you are getting a loan based on the home that you already own. This is taking advantage of the "equity" that you have in your home. You are usually able to get money in the form of a lump sum, a line of credit, or monthly payments.

Reverse Mortgage Requirements

In order to qualify for a reverse mortgage, you must be at least 62 years old. There aren't any minimum income or credit requirements, but you should make sure you do meet any other requirements before spending a lot of time appling for the loan.

Factors affecting the size of the Reverse Mortgage

• The value of the owners home and property
• The current interest rate
• The age of the borrower
• Payment method - Loan is either taken as a lump sum, line of credit or monthly payments. Generally a line of credit will give the most money
• The location of the property and whether the property in that area is subject to a maximum loan limit

The reverse mortgage loan does not have to be paid back until one of the following happen: you sell your home, you permanently move out of your home, or you pass away.

If you are applying for a reverse mortgage, make sure you shop around and explore your options for obtaining the loan. Different lenders will have different rates, some of them can be extremely high. Many loan companies have been taken to court, so make sure to investigate and read your contract thoroughly before signing anything.

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