Reverse Mortgage

What is a Reverse Mortgage?

A reverse mortgage is a loan that allows you to access a portion of the available equity in your home.Reverse Mortgage
The proceeds from the loan may be “tax-free” and you choose how you spend those proceeds.
One of the benefits of a reverse mortgage is that you can continue to live in your home with no monthly mortgage payments.

A reverse mortgage lets you:

  • Access a portion of your available home equity whenever you need it and use is in a variety of ways.
  • Choose how you want to receive your loan proceeds: lump sum, monthly installments, a line of credit or a combination of these options.
  • Finance most of the loan’s fees so there are minimal out-of-pocket expenses.
  • Continue to live in your home with no monthly mortgage payments.
  • Retain the title to your home.
  • Buy a new home
  • Access additional loan proceeds with an annual credit-line increase (amount varies by product).

To be eligible:

  • All borrowers must be titleholders and age 62 or older.
  • You must have equity in your home.
  • You do not need to own the home free and clear, but any existing loans/liens must be paid off at closing with the reverse mortgage proceeds or another acceptable source of funds.
  • Your home must be a single family home, a 2–4-unit home, a condominium, a planned unit development (PUD) or a modular home. Manufactured homes are eligible in some circumstances. Mobile homes are not eligible.

You can use reverse mortgage proceeds for any purpose you desire, such as:

  • Pay off an existing mortgage or other debts.
  • Cover medical care, prescriptions and long-term care expenses.
  • Purchase a new home (down payment required).
  • Modify your home for better accessibility.
  • Make home improvements and repairs.

Contact me if you need more information.