A reverse mortgage is a loan made to homeowners 60 years of age and older, enabling them to convert the equity in their home into cash, without making monthly payments.

To qualify for a reverse mortgage, you and any other homeowner must be at least 60 years old. You also must own the home outright, or be able to pay off any existing mortgage balance with the proceeds from your reverse mortgage transaction. You remain the owner of your home, and have continued responsibility for paying your property taxes and insurance and for keeping the property in good repair.  Seniors do not have to meet income or credit requirements to qualify for a reverse mortgage.

The mortgage amount you can borrow depends on a variety of factors, including the age of the youngest homeowner, the location and value of your home, and prevailing interest rates. 

You can take the loan as a line of credit, a lump sum, in monthly payments, or as a combination of all three options.   These reverse mortage loan payments are tax-free and don’t affect Social Security benefits.

There is minimal or no upfront cost, as closing and other fees can be included in the loan. The reverse mortgage pays off any existing mortgage, and thereby eliminating your monthly mortgage payments.  The interest rate charged on a reverse mortgage can either be monthly adjustable, annual adjustable or a fixed rate. Instead of the homeowner making payments, the interest is added to the loan balance each month.

Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as at least one borrower lives in the home. Mortgage companies recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors. If the sale proceeds are insufficient to pay the amount owed, HUD will pay the bank the amount of the shortfall. In no event will the repayment amount exceed the value of the home at the time the loan comes due.  Additionally, there are no prepayment penalties.

A reverse mortgage is an excellent way to supplement retirement income to pay for such expenses as:

• Existing debts
• Daily living expenses
• Home repairs and renovations
• Healthcare and prescription medications
• Property taxes
• Long term health care
• Car repairs or to purchase a new car
• Travel
• Education
• What do you need or want?

The loan process is quick and simple. Contact one of our Loan Specialists to find out how you can have a government insured reverse mortgage and start enjoying the life you deserve during your golden years. Get Started today!

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