In fact, the reverse mortgage is not repaid until the owner moves and sells the home, or until death, when their heirs either sell or refinance the home.
The most important aspect of a reverse mortgage is that the homeowner retains title to the home, and can never be forced to move out -- no matter how long he or she lives, or how much equity he or she pulls out of the home over the years through monthly checks from a reverse mortgage!
They -- or their heirs -- can never end up owing more than the house is worth, no matter how much money is withdrawn over the years.
How Much Can You Get?The amount the homeowner can withdraw depends on several factors: the value of the home, the amount of any remaining mortgage, the age of the homeowner(s), and the current level of interest rates. In the past few years, a variety of banks and financial firms have created their own reverse mortgage products. Standard FHA reverse mortgages typically provide a monthly check, or a combination of a lump sum and a line of credit which can be drawn down whenever there is a need for cash. Other products are designed to let seniors with more expensive homes withdraw a larger lump sum, and deposit the cash in their own money market account. Each has its own costs, fees and interest rates -- making them difficult to compare. Until now. Comparing the Deals Now, there's a terrific new way for seniors to compare the various specific products, costs and interest charges to find the best offering for their situation