Payments on reverse mortgages

In most cases, you are not allowed to make payments against a reverse mortgage, as the program is simply not designed to be repaid over time. Some reverse mortgage companies may be willing to work with you however to meet your requirements, or establish a slightly different type of loan. In general though, the qualification amounts for a reverse mortgage are based solely on age, home value, and current interest rates.

wow. That answer was completely wrong. There are no prepayment penalties on reverse mortgages, and you are free to make monthly, periodic or lump sum payments on your reverse mortgage. If you have a fixed rate program, it will only reduce your principle. On the adjustable program it will increase your line of credit for future use. I know this to be true, as my parents have used and paid back their reverse mortgage several times.

One other note, you can only increase your line of credit to its original amount, no more.

If you've borrowed from the Line of Credit, you can pay it back and refill the Credit Line. If the Credit Line is full, and you continue to make payments, the money will first be applied to the monthly service fee (if applicable), then interest, then principle. I caution against paying back all the principle ... pay it down to one dollar. That'll keep the Reverse Mortgage open and accessible for future use. Raymond

Amount you can borrow is mainly driven by your age and also the lender who you choose to work with. Every lenders has a different ratio that they can lend depending on your age mainly. Other factors include value of home state Even though credit scores arent required they do become a part of the banks lending process/analysis of your individual loan Simply choosing a monthly income vs a lump sum will provide you more income ( but depends on how long you receive income so becomes tricky to generalize this) always compare reverse mortgages

One of the many benefits of a Reverse Mortgage is that you can select how you want to receive your income (monthly, lump sum, both), but you can never owe more than the value of your home. Even if you have been paid more than your home is worth, you can only owe the value of your home. When the loan comes due, you or your heirs can either pay off the loan with existing funds or sell the house in order to satisfy the loan. Excess proceeds from the sale go to your or your estate.