A Reverse Mortgage lets the homeowner access the equity portion of their home and turn it into cash to use for things they need. Proceeds from the loan can be used for making home improvements, medical expenses, long-term care and any unexpected expenses that may arise.
The loan amount is a percentage of the home's value determined by the age of the youngest homeowner. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 12 months to repay the balance of the Reverse Mortgage or sell the home to pay off the balance.
Important facts about Reverse Mortgages
| ||All borrowers must be 62 years of age, or older |
| ||No credit, income is needed to qualify |
| ||Must occupy property as a principle residence |
| ||No health requirements |
| ||Medicare and Social Security are not affected |
| ||No income taxes on cash received from the Mortgage |
| ||Title remains in homeowner's name until you move out of property |
| ||No repayment until you move out of property |
For more information about Reverse Mortgages, please contact us today.