Before you apply for a reverse mortgage, it is important to know how a reverse mortgage works and what you should expect.
LET’S LEARN HOW REVERSE MORTGAGE WORKS:
A home with a traditional mortgage provides home equity over time as you pay down the loan. Home equity is the term used to refer to the difference between the value of your home, appraised value, and your debt from mortgage against the property.
HOW MUCH CAN YOU RECEIVE ON A REVERSE MORTGAGE?
The reverse mortgage amount you receive is based on several factors, including:
- Youngest borrower’s age
- Lesser of the home’s value or lending limit of the HUD
- Current interest rates
- Costs to borrow the loan
- Existing mortgages and liens (Must be fully paid)
- Remaining money that belongs to you or your heirs
Click below to learn more about how Reverse Mortgage can be a great solution for you.