Two major factors in determining the maximum loan are:
· your age and home value.
Can I make payments to a reverse mortgage?
Yes. There are generally two options with repayments
no repayments required
or make the interest-only repayments
both options do allow for extra payments at any time. Since the interest rate is variable, paying any extra repayments to the loan will reduce the interest charged.
Are reverse mortgage proceeds and payments taxable, or tax-free?
This depends on your circumstances.
Overall, the rule of thumb is – what is the purpose of the loan? If that purpose is not for investment purposes, then there maybe no tax claims applicable.
But it may have an impact on your pensions. This is best checked and answered through the relevant government agency.
Are reverse mortgage loans fixed or variable?
In most cases the loans are always a variable interest rate, that moves up and down with the interest rate movements.
Can a reverse mortgage be refinanced?
The quick answer – is yes it is possible.