FRU News · How It Works
How a reverse mortgage estimate works
How a reverse mortgage estimate is built from age, home value and the amount available, and why the money arrives as a line of credit or monthly payments.
56 sec · Captions available on the player · Presented by AI-generated presenters, with every line taken from the FreeRateUpdate page it answers.
Source: FreeRateUpdate reverse mortgage calculator page
Transcript
This is FreeRateUpdate News. I'm Edmund Ledger. Let's look at how a reverse mortgage estimate works. A reverse mortgage lets homeowners 62 and older turn part of their home equity into cash. It's a loan from a private lender, and the balance grows as interest is added. You keep paying property taxes, homeowners insurance and upkeep on the home. It comes due when the last borrower dies, sells, moves out for good, or falls behind on them. An eligible spouse who isn't a borrower may be able to stay in the home. Our estimator uses the youngest borrower's age, a rate you assume, and the home's value. It's an estimate, not an offer. HUD-approved counseling comes before a lender can process an application. I'm Edmund Ledger, for FreeRateUpdate News.