A Reverse Mortgage May Be Right For You!

If you are at least age 62 and a homeowner, you may qualify for a reverse mortgage that can make your retirement years more rewarding. A reverse mortgage allows you to convert part of the equity in your home into tax-free income now. You don't have to sell your home or take on a new monthly mortgage payment.

The mortgage is called a "reverse mortgage" because instead of your making payments to a lender, the lender pays money to you, either in a lump sum or as a line of credit on which you can draw whenever you want. Properties that are eligible for reverse mortgages include single-family homes, manufactured homes (built July 1976 or later), certain condominiums, and townhouses.  

Use the Funds for Anything You Desire

You might want to travel, supplement your retirement income, repair or modify your home, cover health care, or pay off existing debts. There is no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage.

Payment Choices
You can choose to receive money from a reverse mortgage as a lump sum, receive monthly payments, or use it as a line of credit available whenever you desire – or you can choose a combination of the above.

How Much You Can Borrow 

The reverse mortgage amount depends upon your age – (or the age of the younger of you and your spouse if you are joint borrowers), the current interest rates, appraised value of your home, and where you live. As a general rule, the older you are and the greater the value of your home, the more you can borrow.

Tax-Free Reverse Mortgage Funds 

There is no tax liability when you get a reverse mortgage, and your Social Security and Medicare benefit eligibility is not affected. However, if you choose monthly payments and you do not spend all the money you receive in any one month, it could affect your Medicaid benefit eligibility.

Each borrower receives independent counseling before the mortgage is approved. The counselors you meet with will ensure that you understand how reverse mortgages work and answer all your questions. Because counseling is mandatory, the mortgage can't be approved until after you meet with a counselor from an agency approved by the U.S. Department of Housing and Urban Development (HUD).

When the Mortgage Must be Repaid

No payments are due while the mortgage is outstanding. It is either repayable by your estate after your death or when you stop using the home as your principal residence, or sell it during your lifetime. If the home is sold and the sale proceeds are greater than the amount owed, the excess money goes to you or your estate.

If you think a reverse mortgage could provide the cash you need, contact us and we will meet with you to go over all the details and how you can qualify.