Reverse Mortgages





Reverse Mortgages

Reverse Mortgages - A Reverse Mortgage is a special type of home loan that lets a homeowner convert the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to the homeowner: in a lump sum, in a stream of payments, or as a supplement to Social Security or other retirement funds. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrowers no longer use the home as their principal residence.



With a traditional second mortgage, or a home equity line of credit, you must have sufficient income to qualify for the loan, and you are required to make monthly mortgage payments. A Reverse Mortgage works very differently. The Reverse Mortgage pays you, and it is available regardless of your current income. You don't make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities.

Reverse mortgages are designed to eliminate the burden of making monthly mortgage payments. The loan will not be due until you no longer own and occupy your home as your principal residence. At that time, the money you have borrowed plus the interest and fees will be due and payable. Generally, borrowers or their estate repay the loan by selling the home. If the home is sold, you or your estate may keep the proceeds in excess of the amount due the lender.

Reverse Mortgage Recap

A reverse mortgage allows a senior homeowner 62 plus to exchange a portion of the equity in their home into a Tax Free Income. No Payments are required for as long as you live and maintain the home as your primary residence. Some of the highlights are:
  • The Tax Free Cash can be used for any purpose.


  • You retain the Title to your Home.


  • You can sell your Home at Anytime.


  • You can receive the Cash in Monthly Payments, A Lump Sum, A Line of Credit, or a Combination of the above.


  • Social Security and Medicare are not affected.


  • There are No Income, Credit or Health Qualifications
Questions about Reverse Mortgages:
  • Do you really need a reverse mortgage?
  • Can you afford a reverse mortgage?
  • Can you afford to start using up your home equity now?
  • Do you have less costly options?
  • Do you fully understand how these loans work?



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