Reverse Mortgage: Age Considerations

When considering a reverse mortgage, pay careful attention to age because it plays an important factor in the process. Here are age considerations, when dealing with a reverse mortgage.

Age Requirements

In order to qualify for a reverse mortgage, you will need to meet certain age requirements. You will have to be at least 62 years old in order to qualify. If you are married, your spouse also has to be at least 62 years old.

Payments

If you are considering getting a reverse mortgage, you might want to consider waiting past the age of 62 before you get a loan. For example, if you recently turned 62, and you have plenty of money to live on for the next few years, you might want to delay getting involved with the program.

With a reverse mortgage, you will be able to receive larger monthly payments if you wait until you are older. Whenever you take out a reverse mortgage, the lender is going to look at life expectancy tables to determine how much longer you could live. They will then take the amount of equity that you have in your house and divide it by the amount of months that you have left according to estimates. This will have the effect of increasing your mortgage payment and giving you more monthly income.