A Smart Financial Solution
Convert part of the equity in your home into income without having to see the home, give up title or take on new monthly mortgage payments. Many homeowners, 62 years and older, are discovering the benefits of a reverse mortgage
Reverse mortgage proceeds can be used for virtually anything, it is completely up to you:
- Supplement your retirement cash flow
- Help fund health care costs
- Retire existing debt, even an existing mortgage
- Pay for home repairs or modifications
- Help prevent foreclosure
- Cover property taxes
- Secure a cash reserve for emergencies
With the aging of our population, and the anticipated financial needs of mature homeowners, it is easy to see why a reverse mortgage is a retirement tool whose time has come. It is a popular home loan that was created specifically for senior homeowners, 62 years and older, who want to convert part of their home’s equity into cash.
This is a non –recourse loan. This means if the home equity conversion mortgage loan balance exceeds the home’s value at maturity, there is no-recourse to you, your estate, or your heirs as long as you or your estate sells the property to pay off the debt at current market value.
Stay in your home and put its equity to work for you.
A reverse mortgage may enable you to stay in your home for the rest of your life as well as supplement your financial well-being. It is a financial solution that could help pay for a variety of expenses.
Today’s Seniors Use Reverse Mortgages to make a Difference in their lives – You can too!
- Retain title to your own home
- Enrich the quality of your life with the extra money
- Capitalize on your home’s equity without having to move
- Make no monthly mortgage payments
Best of all, you get to decide how to receive your money.
- All at once, in a lump sum
- Fixed monthly payments whether for a set term or for as long as you live in the home
- Line of credit, which is the most common option, allows you to draw on proceeds any time
- Or a combination of the above
Is a Reverse Mortgage Right for you?
Your home is probably the largest asset you own and using its equity in a reverse mortgage requires serious thought. It may not be for everyone; however, a reverse mortgage is all about making the most of the equity that you have acquired. This popular home loan has been helping seniors for more than a decade and their desire to do so is usually supported and encouraged by the seniors’ adult children.
There are up-front costs that can be rolled into the reverse mortgage so you may want to consider other options if you plan to stay in your home for only 2 to 3 more years. Available options include a home equity line of credit or an equity term loan. Since every senior situation is unique, it is important that you speak to your tax or financial advisor or someone you can trust when exploring your reverse mortgage options.
The proceeds you may be eligible to receive depend on several factors:
- Your age (or the age of the youngest borrower)
- Your appraised home value
- Current interest rates
- Amount of equity in your home
As long as you have enough equity in your home, you may qualify for a reverse mortgage. Basically, the older you are and the more equity in your home, the more money you can receive. Your home must be your primary residence not an investment property.