When is a reverse mortgage paid? A reverse mortgage is a loan against your home that you are not required to pay back as long as you live there. The loan is repaid from the borrower’s estate or the eventual sale of the home when the last surviving borrower no longer lives in the home. Money can be received in a lump sum, monthly payments, or through a line of credit.

How do you qualify for a reverse mortgage? You must be 62 years or older to qualify and there are no income or credit requirements for a reverse mortgage. The amount you can borrow in a reverse mortgage is determined by your age, your home’s value and interest rates. The older you are, the more you can borrow.

Will I lose my home? The bank never takes over the deed unless there is a default. Defaults can occur if the taxes and insurance are not paid current or the homeowner doesn’t live in the home for a one-year period.

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