How Much Will a Reverse Mortgage Pay?
Every reverse mortgage is unique.
The equity converted by a reverse mortgage is paid as equity advances, which could be a lump sum, regular payments, or a combination of these approaches. Lenders have their own terminology for their products, but using the term equity advance for the money you’ll receive reminds you, the borrower, that these payments represent a loan against equity and that this accumulating debt must be repaid at some point. The lender’s maximum loan limit for your property will depend on five factors including
The equity converted by a reverse mortgage is paid as equity advances, which could be a lump sum, regular payments, or a combination of these approaches. Lenders have their own terminology for their products, but using the term equity advance for the money you’ll receive reminds you, the borrower, that these payments represent a loan against equity and that this accumulating debt must be repaid at some point. The lender’s maximum loan limit for your property will depend on five factors including
- The present and future value of the property, and
- The age and gender of the homeowner(s).
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