A few basics that one should know about reverse mortgage loans are as follows:

1. Owners of residency must be at least 62 years of age and must be the primary resident to apply for the loan.

2. Owners are still responsible to pay taxes and insurance.

3. Reverse Mortgage loans have no affect on your retirement earnings. The monthly payments are for your equity and are not considered earned income. This typically means that you do not pay taxes on the monthly payments that you receive.

4. With most reverse mortgage loans, the loan is paid back in several ways. a) The home becomes the property of the bank loan provider at the time of your death. b) You can pay back the loan should you decide to move to a new residence. c) Your heirs can pay off the loan and retain the property ownership.

5. Ownership of the property remains with the original owner.

6. Several things factor into the amount for the reverse mortgage loan. a) Age of owner. b) value of home. c) inerest rates d) closing cost.

7. Always talk to several reverse mortgage lenders before taking an offer.

Originally posted: Reverse Mortgage Basic Requirements