Must have enought equity built up to payoff all liens on title
Borrower never gives up title to the home
There are no mortgage payments to be made
Borrower retains all future value that grows in home
3 different ways money can be paid..lump sum, line of credit, monthly payments, or a combination of the three
Borrowers are required to receive counseling from an approved housing couseling agency
Property taxes and home owners insurance is still due yearly
Benefits of a Reverse Mortgage Loan
No Payments during the life of the loan Pay for percriptions and medical expenses Free up funds for other opportunities Retain ownership of home No restrictions on use of cash No Junk Fees - Rates the same everywhere Government Guaranteed No recourse loan/never owe more than home value
Some Common Reverse Mortgage Questions...
What is a reverse mortgage?
A reverse mortgage is a loan against the equity in your home that does not require repayment as long as the home continues to be your primary residence.
How does it differ from a regular mortgage?
With a regular mortgage you pay the loan back with monthly payments. With a reverse mortgage the loan is paid back when you move out of the house, normally at the time of a sale or transfer of title to another, so you make no monthly payments.
Will a reverse mortgage lower my social secuirty or Medicare benefits?
No, these benefits are not based on your assets.
Can I lose my home as the result of a reverse mortgage?
No, unless you do not pay your property taxes or maintain your homeowner's policy, just like a regular forward mortgage.
I have a mortgage on my home; can I still get a reverse mortgage?
Yes, all liens against the home need to be paid off with the proceeds of the reverse mortgage.