USE YOUR HOME EQUITY WITH A REVERSE MORTGAGE
For homeowners age 62 or older, a reverse mortgage offers a way to convert some of the equity in your home into cash.
Unlike a traditional equity loan or home line of credit, a reverse mortgage doesn't have to be repaid until the last surviving borrower or an eligible non-borrowing spouse no longer lives in the home, or the home is sold. The borrower is still responsible for paying taxes and insurance, homeowner association dues if applicable, and maintaining the condition of the home.
If you need supplemental income, have emergency expenditures, or want to purchase a new home without incurring a monthly payment,call or email me today!
Am I eligible?
All title holders must be 62 or older.
The home must be the borrower's primary residence, and must meet FHA minimum property standards
You must have sufficient equity in the home
How much money can I get?
This is determined by the age of the youngest borrower, or eligible non-borrowing spouse, your home value, the amount of equity, FHA lending limits, the current interest rate, and the reverse mortgage product and payment option you choose.
Is the Reverse Mortgage Insured?
The reverse mortgage, also knows as HECM, is insured by the Federal Housing Administration (FHA) to protect lenders and borrowers alike. This insurance guarantees you will receive your loan proceeds as agreed upon with the lender at the closing of the loan.
Will the bank own my house?
No. Just like a traditional mortgage, as long as the terms of the loan are met*, the borrower retains full homeownership and can sell the home at any time.
How do I receive my proceeds?
You can take your funds as a lump sum, monthly payments for a specified time period, or for as long as you live in the home, a line of credit or a combination of these.
What costs are associated?
Closing costs vary based upon the type and size of the loan, they are the same as those for any traditional mortgage. You can roll most of the up-front costs into the loan, so out-of-pocket expense can be minimized.