It is important that you understand that reverse mortgages are loans. This loan ideally targets those home owners who are over 62 years of age and have home equity. Here you will be allowed to borrow money of a value as that of your home and you will get funds in fixed monthly payments or lump sum. Ideally you may not even be required to pay the loan. The loan balance is due only when the borrower dies. To be safe most lenders will ensure that your payment is structured in a such a way that the payments you receive will not go beyond the value of your home. Therefore in the event the loaned money will be more than the borrowers home value it is the lender to suffer the loss and the borrower will not be held accountable for the loss. The purpose of this is to ensure that your interests as the borrower have been protected. As such the lenders are keen to check the factors that may lead to such a scenario like the value of homes in the area going down or the borrower living more than anticipated.
Therefore with reverse mortgages the loaners are not the ones who pay the loan rather it is the lenders who pay them. Also the homeowners are free to choose the mode of payment by the lender. In addition it is the home owner who also maintains the title deed of the property until when he or she dies. Mostly if the homeowners heirs decide to pay the mortgage loan the lenders cannot deny them the opportunity. Once the heirs pay the mortgage they will be allowed to keep the home after the death of the owner.
Reverse mortgages are the best mortgage type you can take since their proceeds are not taxed. This added to the fact that you will not be required to make monthly loan payments make reverse mortgages the best option for those seniors who d not want these monthly commitments.
If you are looking for reverse mortgage options then there is a number of them to choose from. You can choose to take a line of credit reverse mortgage, equal monthly payments, or even term payments and a line credit. All these have specific and unique advantages, terms and conditions and it is important that you consider each of them carefully before making a choice. Whichever the reverse mortgage you take your old age will be well taken care of.