reverse mortgages

Reverse Mortgage Information

How Does It Work?

If you are 62 years or older, and your home is mortgage is paid off (or paid down), a reverse mortgage may be the way to age in place with greater financial security.

Convert Home Equity to Cash Without Selling or Moving

This unique loan enables you to turn a portion of the accumulated equity in your home into income tax-free cash you can use any way you wish: daily expenses, health care needs, medical bills, home improvements and repairs, paying off debt, purchase a car, boat, or second home, and much more.

The maximum amount you'll be eligible for from a reverse mortgage is based on: (1) age of the youngest owner or spouse; (2) your home's current market (appraised) value or $636,150, whichever is less, and; (3) current interest rates and loan program pricing.  The net amount you'll be eligible for will be the maximum amount less any current liens or mortgages and upfront costs, if any.

And, you can choose how you want to receive your money: a lump sum payment; regular monthly payments; income for life; a line of credit to be used or deferred until needed; or, any combination of these options.  Moreover, the payment plan you choose can be changed at any time as your needs change. Best of all, there are no monthly or other payments required as long as you, or your spouse, live in your home and keep the loan in good standing.  To keep the loan in good standing, your obligations include: (1) keeping real estate taxes and homeowners insurance (or HOA fees) current; (2) keeping the property maintained, and (3) continue to live in the property as your primary residence.

Enjoy Unique Terms Developed for Senior Homeowners

Reverse mortgages were developed to accommodate the changing financial circumstances seniors experience after their working years. The primary objective is to help these seniors maintain their independence, while aging in place safely and securely.  As such, reverse mortgages were designed with the following provisions:

  • No monthly payments to lender required
  • Funds received are not taxed as income
  • Limited income/credit qualifications required
  • No effect on Social Security or Medicare benefits
  • No personal liability to borrowers or heirs (protected by FHA insurance)
  • Undrawn line of credit balance grows (compounds monthly) at the same rate charged on borrowed funds. Growth is guaranteed regardless of any future decline in property values.

Rest Assured, Your Home is Always Yours

Most importantly, you'll never give up ownership of your property, and you can remain in your home for as long as you desire. Repayment is due when the borrower (or last surviving spouse) sells the home, moves out permanently, or passes away.

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Because every family and every home is different.

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