Home Reverse Mortgage Facts & Possibilities
A REVERSE MORTGAGE is a loan that allows seniors to use the equity they’ve accumulated in their homes over the years to improve their quality of life and provide financial independence and security.
- All borrowers must be 62 years and older
- Home must be your primary residence
- Borrower must continue to pay property taxes, insurance and maintain the home
- You own your home – no different than a traditional mortgage. Title stays in your name!
- Social Security benefits and Medicare are generally not affected by a reverse mortgage – consult your tax advisor
- No repayment is made until the home is sold or the owner permanently moves out or passes away
- You will never owe more than the value of your home
- When the loan is due, your heirs have choices – they can repay the loan and keep the house, or sell the home and repay the loan. Estate nor children are responsible for debt
What are the possible uses of a REVERSE MORTGAGE? It’s Up to You.
- Assistance with month-to-month living expenses
- Assistance with healthcare and prescription drug costs
- Pay for home repairs or modifications
- Pay off an existing mortgage
- Pay off existing debt
- Reduce burden on children
- Repair or purchase a car
- Charitable giving or other financial assistance
- Pay property taxes
- Travel or special occasion costs
- Any purpose you choose
By converting equity into income, a reverse mortgage is a way to stay in your own home and receive cash to use for any purpose.
Independence. Peace of Mind. Security. You’re in Control.
Receiving Your Money
Receive your money in one of many ways:
- Lump sum – A one time payment at closing. Fixed rate loans require lump sum
- “Tenure” Monthly Payment – Receive monthly income. Can be Deposited directly into your checking account every month for life.
- “Term” Monthly Payment – Receive monthly income. Can be Deposited directly into your checking account every month for a set number of months.
- Line of Credit – An open credit line from which you may draw at any time.
- Or a Combination of any of the above.
Reverse mortgages allow you to convert equity in your home into supplementary cash to use whenever, and however, you wish: as a lump-sum, monthly payment or as a line of credit you can tap as needed. The loan does not have to be repaid as long as you continue to live in your home.
The loan is backed and guaranteed by the Federal Government.
The home must be your primary residence.
Title to the property remains in your name.
Borrower must pay property taxes, hazard insurance and keep the home maintained.
You do NOT make monthly payments. EVER!
Cash received is TAX FREE!
You own your home – no different than a traditional mortgage.
Social Security benefits and Medicare are generally not affected by a reverse mortgage – consult your tax advisor.