What is a Reverse Mortgage?
By letting your home pay you back, the value you convert to cash opens new opportunities. In addition, you will NEVER be forced to leave the security of your home, or make a payment as long as you live in your home.
Simply Put: A Reverse Mortgage is the only safe way to access a portion of the value in your home without ever having to make a monthly payment.
How Does A Reverse Mortgage Work?
The amount available to a homeowner using a Reverse Mortgage is based on: the age of the youngest homeowner, the appraised value of the property, and the current interest rates.
How is a Reverse Mortgage repaid?
Because a Reverse Mortgage requires no monthly payments, this allows your estate a one year period to either sell the home or to refinance the loan when the loan becomes due.
For Example: Let’s assume someone takes out a Reverse Mortgage and owes $50,000 after 5 years. Then, the homeowner passes away and the estate sells the house for $250,000. The lender gets $50,000 and the estate inherits $200,000.
Can I get a Reverse Mortgage if I have a current mortgage?
Reverse Mortgages are designed to eliminate the burden of making monthly mortgage payments.
This creates positive cash flow.
Reverse Mortgages protect the borrower from foreclosure due to non- payment, because there are no payments required.
How do I qualify?
Be at least 62 years old,
Occupy the property as your primary residence,
Pay off any existing mortgages at the time of settlement, and
Attend a HUD-approved housing counseling session.
How can I use the money?
Some of the most common uses include:
Paying off an existing mortgage or other debt
Doing home improvements
Purchasing long-term health care or paying for in-home care
Supplementing income, helping family members, traveling
How much money do I qualify for?
your age
the appraised value of your home
the current interest rates