A reverse mortgage is a unique way for homeowners 62 and older to tap into their home’s equity.
DEPENDING UPON HOW MUCH YOU QUALIFY TO RECEIVE YOU CAN:
- Completely eliminate your current mortgage payment (the funds you are now sending in would remain in your checkbook for you to use).
- Receive monthly payments for life (as long as you remain in your home).
- Receive a Line of Credit to use for future needs.
Safe – Secure – Reliable
Monthly Payments for life is limited to the Tenure plans. Limitations are the borrower must maintain home as principal residence, continue payment of taxes, insurance and maintenance of home. Lender may set aside a specific amount of money for a line of credit. Borrower may out live the monthly payment stream. Any combination of the above depending on how much you qualify to receive (consult our specialist). Best of all, with a reverse mortgage NO MONTHLY MORTGAGE PAYMENTS are required as long as you remain in your property as your primary residence.
For homeowners who have paid off their current mortgage the equity locked in your home would now become available to you to use as you desire. For those still making a mortgage payment the money you send to your mortgage company each month would stay in your checkbook for your benefit and not that of your mortgage company. Depending on funds available you can receive cash at closing, monthly lifetime payments (as long as you remain in your home), a line of credit or any combination you choose.
Stay In Your Home
If you plan to stay in your home, as most seniors do, the FHA Insured HECM (Home Equity Conversion Mortgage) may be your best option.
REASONS TO CHOOSE
- No monthly mortgage payments
- Pay off debt, lowering your monthly expenses
- Travel to see grandchildren, family, friends
- Simply feel more financially secure knowing extra funds are available when you need them.
Take Our Reverse Qualification Quiz!
What are the advantages to a reverse mortgage?
There are many advantages. Here’s just a few:
- A reverse mortgage allows the borrower(s) to remain in their home where they are familiar, comfortable and secure. Statistics show this is one of the number one factors for obtaining a reverse mortgage.
- Funds received from a reverse mortgage are not due until both borrowers permanently leave the home. No monthly mortgage payments are required. Payments for taxes and insurance must be made.
- Freedom to use the funds as needed. Pay off credit cards, dental or medical bills or other high interest debt and end those monthly payments as well.
- Funds are considered a loan and therefore Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits. Consult Tax Advisor. Not all products available in all states.
- Flexible. The money you received can be used however you wish and you remain independent and gain the ability to support yourself without the assistance of others.
Surprising Reverse Mortgage Misconceptions
The Bank owns my house.
False. You remain on title just as you would with any other mortgage and you may choose to sell your home whenever you wish. There are no pre-payment penalties.
When I go to a nursing home or pass away my heirs will be responsible for paying off my Reverse Mortgage.
False. The value of the home is what secures a Reverse Mortgage. This non-recourse loan means the bank cannot require repayment greater than the value of the home. When you sell or no longer use your home as your primary residence you or your estate must repay the lender for the cash received from the reverse mortgage, plus interest and service fees. After the loan is satisfied any remaining funds go to you or your estate.
If I have a current mortgage I cannot get a reverse mortgage.
False. Your current mortgage is paid off with the proceeds of a reverse mortgage resulting in no more monthly mortgage payments for as long as you remain in your home. Any remaining cash can be left on a Line of Credit to be used later or any other option you select.
There are no responsibilities with a Reverse Mortgage.
False. With a Reverse mortgage you are still responsible for paying your taxes and insurance as well as normal upkeep of the property. You still DO NOT make any monthly mortgage payment as long as you remain in the property as your primary residence even if you live to be 100!