Reverse mortgages question, age 62+?

What is the reason why you can't make a reverse mortgage until you are age 62?

Why not 60 or 57?

Note: No comments on how bad they are and how they are ripping people off.

I'm just curious

5 Answers

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  • Anonymous
    9 years ago
    Favorite Answer

    The bank has to set a minimum age because they want to make sure that you die before the mortgage balance gets up to the point where you're running out of equity. they have to pick a cut-off age somewhere, so it could have been 60 or 57 or whatever, but each year they move it down they take a little bit more risk. I guess 62 was the age where they figured they were still safe but they wouldn't lose too much by giving up business from people who wanted the reverse mortgage but didn't meet the age requirement.

    Also, 62 is the age where you can get early social security benefits, so that probably played a big part in it.

    • 6 years agoReport

      no bank will ever touch my equity and many have tried and they got their unpleasant surprise which is i tell them to go find a jew.

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  • msc
    Lv 6
    9 years ago

    A reverse mortgage is a loan that's made to a homeowner in the form of monthly payments that last for the rest of his or her life. The homeowner never has to repay the loan as long as he or she is living in the house. When the homeowner dies, the house is sold to repay the loan.

    If you live too long, you could end up receiving more from the loan than the house is worth, and the bank would cover that loss. That's why they don't want you to apply too young -- because they're making a bet on your lifespan.

    • 6 years agoReport

      tell all banks to go worship the devil

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  • Anonymous
    6 years ago

    all banks are crooks and don't give a damn accept their profits so all banks can go fly a kite. i qulify for a reverse mortgage and get hit often by lenders and i tell them to go find a jew, yes i'm aniti

    semetic and i hate jews.

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  • 9 years ago

    They want to make certain that one will be ready to leave at the end if one wants to sell their house on an installment plan, which is what these arrangements turn out to be.

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  • Anonymous
    9 years ago

    IRS regulations.

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