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How to Read a Reverse Mortgage Statement Form

How to Read a Reverse Mortgage Statement Form

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How to read a reverse mortgage statement

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Instructions and help about How To Read A Reverse Mortgage Statement

hi I'm de Nance and today we're going to answer the question how does a reverse mortgage work so here we go first the lender has to determine the loan amount they'll use a formula set out by FHA that takes into account the value of the home the age of the borrowers and the current interest rates to determine the loan amount usually it's between 40 and 60% of the home value depending on your age once they know what you qualify for then they'll want to know how you want to take your money the closing cost of the loan will be rolled into the loan itself this means you'll have a starting balance equal to those costs plus any other funds you decide to take it closing perhaps you have your home paid off and don't need to have all of the loan money right now you could choose to take your loan proceeds in the form of tenure which is a monthly payment for as long as you live in the home in this scenario on the first of every month you will

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