The loan is not repaid until the borrower no longer occupies the house. The loan is repaid at death, or when the borrower moves out. While the program is open to those 62 or older, the older you are when you apply, the more money you can get. In the case of a married couple, it s the age of the younger one that counts. The typical borrower is about 75.
Some lenders also allow a smaller lump sum payment with a line of credit.
Haskell says that the line of credit option is not available in Texas due to the state s lending laws. What you do with the money is up to you, as long as you maintain the property and pay your property taxes. Haskell says answering that question requires a complicated mathematical formula that weighs the value of your house, your age, where you live and from whom you borrow. If you do not own your home outright, but are within a few thousand dollars of doing so, part of the reverse mortgage can be used to pay off the mortgage, according to Haskell. However, there cannot be more than one lender.