How a Reverse Mortgage Works

The main difference between a reverse mortgage and a typical conventional mortgage is that with a reverse mortgage you will never have a monthly payment. This is because interest and other charges are added to the loan balance and are collected at the time the loan is repaid instead of on a monthly basis. Interest only accrues on the equity used.

Once it is determined that you qualify for a reverse mortgage based on age and homeownership, a calculation is used to determine how much is available to you based on the following:

• Age of all parties on title (the youngest borrower's age is used for qualifying)
• Current appraised value of your home
• Current interest rate

Your Senior Trust advisor will provide you with all reverse mortgage programs available and an estimate of what is available to you with each program.