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Reverse Mortgages Explained

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What Is A Reverse Mortgage

A reverse mortgage is a unique financial tool that allows seniors to access the equity in their homes. The reverse mortgage loan requires no monthly payments or fees. Instead, the lender pays you. No payments are due as long as you remain in your home. The loan balance only becomes due when you move from your home or pass away.

Reverse Mortgage Facts:

• No financial qualification is needed
• There are no payments as long as you live in your home
• Fully guaranteed by the Federal Housing Administration (FHA)

What Are The Benefits of a Reverse Mortgage

There are a number of benefits:

• Provides access to money that you can can use for assisted care in your home or in a care facility
• Tax-free payments as long as you live in your home
• No income or credit requirements
• The proceeds of the reverse mortgage will pay off any outstanding mortgages against the property
• No payments are required during your lifetime as long as you live in the home
• Keep title and possession of your home
• Choose a cash flow plan customized for your needs
• Pay off existing mortgage
• Retain your personal and financial independence
• No prepayment penalty

Common Use of Loan Proceeds

• Health care or long-term care
• Reducing financial burden on your children
• Living expenses
• Emergency cash fund
• Home improvement
• Paying off debt
• Travel
• Paying cash for new RV, car or time share
• Hobbies

Do I Qualify for a Reverse Mortgage?

To qualify for a reverse mortgage, you must:

• Be 62 or older
• Own a single-family home or condo with some equity
• Occupy the property as your primary residence

Posted in: Reverse Mortgage, Reverse Mortgages, Reverse Mortgages as an Option

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