Reverse Mortgage
A reverse mortgage is a special type of loan that enables you to tap into the equity in your home and receive cash, a tax-free monthly income, and/or a line of credit. There are no income or credit qualifications and there are no monthly payments to make. The loan is not repaid until you permanently leave your home.
How to Qualify and How Much Out?
A reverse mortgage is easy to obtain, provided that 1) You are at least 62 years of age or older 2) You occupy your home as your primary residence 3) You have substantial equity in your home (proceeds of the reverse mortgage can be used to pay off existing liens or mortgages). The amount of money you receive from a reverse mortgage is determined by your home value, the number and age of the homeowners and the current interest rate.
How can the Money be Used?
You can use the money you receive from your reverse mortgage in any way you choose such as *Pay off Debt, *Supplement your Income, *Make Home Improvements, *Pay off a Current Mortgage, *Medical Expenses, *Buy a new car, *Travel, *College Tuition or gifts to family. The possibilities are endless.
When is the Mortgage Repaid?
The reverse mortgage becomes due and payable when the borrower permanently leaves the home-whether they move, sell or pass away. Reverse mortgages are typically repaid from the proceeds of the sale of the home, with any remaining equity staying with the homeowner or their heirs. If a spouse passes away, the surviving spouse continues to receive the full benefits of the reverse mortgage with no repayment until they decide to permanently leave the home. For more information, contact a Reverse Mortgage Specialist.