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.
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.