A reverse mortgage is a financial tool that allows you to release the equity in your home to do a number of things. You can get cash to pay bills, make repairs, travel, or do almost anything you like. You can set up to receive monthly payments or a line of credit to maintain your standard of living. You can also do a combination of all of the above.
The numbers or the amount of money you have access to is based on your date of birth, the value of the property and the interest rate. We must pay off any existing lien or mortgage to clear the title. Any money over and above what you already owe on the house is yours to work with. You can get a lump sum after closing, a monthly tax free check, a line of credit to use as you choose, or any combination of these choices.
Since the loan is guaranteed by the U.S. government it is a requirement that all borrowers and non borrower spouses complete counseling. This insures that everyone completely understands how the reverse mortgage works.