Basics of Reverse Mortgage

1. Benefits
You tap into the equity you have in your home as a lump sum of cash, monthly payments, or a line of credit. You never need to repay the Reverse Mortgage as long as you live in the home.

Your existing mortgage (if you have one) will be fully paid off. The disbursements are tax-free and can be spent however you like with no impact on Social Security or Medicare benefits.

2. Eligibility
In order to qualify, all homeowners must be age 62 or older.  Finally, you should be planning to stay in your home for at least several years. There are no income or credit requirements and no repayment as long as you live in your home.

3. Cost
Cost vary from program to program.  That’s why we offer a variety of programs to meet your needs.  Reverse Mortgage costs are similar to traditional mortgages such as interest charges, origination fees and closing cost.  Interest rates are usually lower than the best rates on a traditional mortgage. All costs are packaged into the Reverse Mortgage so you never have out-of-pocket expenses.

4. Liability of estate
Your heirs are never personally liable for the Reverse Mortgage since it is secured by the equity in your home. Your heirs inherit the property and have a one year option to sell it or refinance with a traditional mortgage.

5. Repayment
You owe nothing as long as one homeowner lives in your home. Also, the FHA mortgage insurance ensures that you can never owe more than the house is worth, even if the home depreciates.

When you move out of the home, your estate has up to 12 months to repay the loan (usually by selling or refinancing).