Reverse mortgage is catching up as the next best way to raise funds locked up in your house. You must be wondering as to what is the difference between a mortgage and a reverse mortgage. Basically it is the difference of your hair color. In a mortgage the borrower makes monthly amortized payments to the banker (lender) to wards the loan amount. And at the end of the term period the property is released back to the borrower.
But in Reverse mortgage you must be at least 62 years of age to apply for one in the US. This is one of the prerequisite for forwarding your application for the loan. A good aspect of reverse mortgages is that that there one does not need special credit requirements. The loan amount depends on the estimated value of the property you hold. The reverse mortgage need not be paid back by the borrower as long as he lives in that home. While browsing through the net I chanced upon a site which provides structured details about the process, OmniReverseMortgage.com and it is quite helpful.
To find out the amount that one needs, financial institutions use a reverse mortgage calculator. Here the estimated worth of the property, age of the senior, mode of payment are considered before arriving at the amount. The calculation is based on the federally insured “Home Equity Conversion Mortgage” which is the authority in dispersing reverse mortgages values.