The amount a borrower can receive from a reverse mortgage is based on the value of their home, their age, and the current interest rates. The loan does not have to be paid back until the borrower moves out of the house, sells it, or passes away. At that point, the loan is typically repaid using the proceeds from the sale of the home. If the loan balance exceeds the value of the home, the borrower or their heirs are not responsible for the difference.

Borrowers must continue to pay property taxes, homeowner’s insurance, and maintenance costs while they are living in the home.

These are well-established programs that have continued to evolve with our changing times and the needs of consumers. It may be a surprise, but these programs have existed since 1961. They have gone through several revisions, making them more consumer-friendly and a safe form of income for seniors.

Insured through the FHA, they have increased loan limits to include Jumbo-sized loans as of 2014. Overall, reverse mortgages can be a practical option for seniors who want to tap into the equity in their homes without having to sell or move out. However, it’s essential to carefully consider the pros and cons of this type of loan and to work with a reputable lender who can explain all of the terms and conditions.