Reverse mortgage loans were made specifically to help seniors cash out equity built up in their homes without incurring any monthly payments or risk losing their house if a new loan defaults. This money can be drawn out as a single lump sum or as a stream of monthly payments. The terms and process to secure these reverse mortgages can be complex. It is best to fully research how they work if you are considering a reverse mortgage. There are rules governing who is eligible for reverse mortgages. Firstly, you must be at least 62 years of age at the time of the mortgage closing. These loans can be subjected to abuse by some unscrupulous lenders. For that reason, the law mandates that reverse loan applicants first attend an education course approved by the government. This is free and provides valuable information. As indicated, there are no payments due on money taken out on these loans until one of three scenarios happen. The first is if the borrower passes away. The second is if the borrower leaves the home and no longer resides there. The third is if the home is sold. So, there is no scenario where the borrower still owns and lives in the home that require payment or subject them to losing their home. If there are any outstanding normal mortgages attached to the home, then they must be paid in full with the proceeds of the reverse mortgage with the balance of the reverse mortgage going to the borrower. The amount of funds available on a given reverse mortgage is controlled by several factors. The first factor is the value of the home. The borrower is able to take out a higher reverse mortgage amount commensurate with the appraised market value of the property. The second factor is current market interest rates. The higher the current benchmark interest rate then the less that can be secured in a reverse mortgage. With a reverse mortgage, the age of the borrower becomes a factor. The older the borrower is, the more that can be borrowed with these type loans. As stated before, the minimum age is 62 to begin with. There are formulas used by various lenders to adjust the amount available depending upon the home owner's age. Most of them are available online at the applicable sites. Your location can also impact the amount available to you from a reverse mortgage. Each county can have different formulas thus yielding varying amounts which can be cashed out. Additionally, how you take the money can effect the calculation. If you are willing to take the pay out in monthly payments, then the amount increases. Reverse mortgage loans can be complex, but they also can be greatly beneficial to seniors need to supplement fixed incomes. They present an avenue to clear all bills and not have to worry about being forced to leave their home. Just ensure you are fully armed with all the information before entering the process.