Reverse Mortgages
Safely Providing Options for a Better Retirement
A reverse mortgage is a loan that allows you to safely turn the equity in your home into cash. It can help you improve your retirement years with tax-free funds that never need to be repaid as long as you live in your home. To qualify for a reverse mortgage, you must be 62 years or older and live in your home as your primary residence. There are no minimum income, asset, employment, or credit score requirements.
Generally, there are two types of reverse mortgage programs available: government-insured Home Equity Conversion Mortgages (HCEM) and private reverse mortgage products.
The Many Benefits of Reverse Mortgages
- No loan repayment required as long as you live in your home and maintain general homeowner responsibilities
- No minimum income, asset, employment, or credit score requirements
- Retain full ownership of your home
- Choose the method to receive your funds that best suits your needs
- With a government-insured reverse mortgage, you and your reverse mortgage are protected in case of housing market declines
- You have the option to pay some or all of your reverse mortgage balance at any time without penalty
Amount of Money Possible from a Reverse Mortgage
The amount of money that is available to you depends on your age, the value of your home, and the current interest rate. Generally, the older you are, the lower the interest rates, and the higher the value of your home, the more money you can receive.
Use Your Money Any Way You Want
You can use the money from a reverse mortgage in any manner you choose.
- Pay off existing mortgage
- Make home repairs or improvements
- Pay off credit card debts
- Pay for home health care
- Provide a cash cushion for financial security
- Buy a vacation home
- Enjoy life a bit more
Different Payout Options to Meet Different Needs
A reverse mortgage can provide many choices and options for receiving your money.
- A single lump sum cash payment
- A line of credit that you can draw upon as needed
- A monthly cash payment
- Any combination of any of these options
A Safe Option for You and Your Heirs
It is comforting to know that a government-insured reverse mortgage is extremely safe and secure. You can never be foreclosed upon for failure to make monthly mortgage payments because no monthly mortgage payments are required. In addition, with a government-insured reverse mortgage, the Federal Government guarantees that you receive all of your scheduled payments.
In addition, a built-in insurance from the Federal Government protects your family and heirs. With this federal insurance, the total amount of debt that will have to be repaid if the home is sold can never be greater than the value of your home. If your heirs want to keep the home, they can simply pay the reverse mortgage loan balance in full. Further, if, as expected, the value of your home is greater than the amount of the loan, you or your heirs would receive 100% of any proceeds after the loan is paid.