Reverse Mortgages:the Facts

In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Deciding how you would like to be paid: by a monthly amount, a line of credit, or a one-time payment, you can receive a loan amount determined by your home equity. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves out, or dies. You or an estate representative must repay the reverse mortgage funds, interest , and other finance charges when your house is sold, or you are no longer living in it.

Who is Eligible?

The conditions of a reverse mortgage loan usually are being sixty-two or older, using the property as your main living place, and having a low remaining mortgage balance or having paid it off.

Reverse mortgages can be advantageous for retired homeowners or those who are no longer bringing home a paycheck and need to add to their limited income. Interest rates may be fixed or adjustable and the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. The house is never at risk of being taken away from you by the lender or sold without your consent if you live longer than the loan term - even if the property value dips under the loan balance. If you'd like to learn more about reverse mortgages, please call us at .