Your Reverse
Mortgage Primer
- THE BASICS
A Reverse Mortgage is a special type of loan allowing homeowners ages 62 and up to convert the equity in their primary residence into cash. Borrowers can receive their money in a lump sum, in fixed monthly payments, as a line of credit or any combination of these. Instead of paying off the loan in monthly installments to a lender, the bank PAYS YOU.
- I DON'T WANT TO LOSE MY HOUSE!
Borrowers NEVER give up ownership of their home. The loan is repaid only when the borrower moves, sells the home or passes away - most often, using proceeds from the sale of the property.
- WHO QUALIFIES?
There are only two qualification requirements: You must be at least 62 years old and own your home. THAT'S IT; there are no income, asset or credit requirements. You may be eligible even if you still owe money on a first or second mortgage - in fact, many of our members use their Reverse Mortgage to pay off their existing mortgage.
- I CAN USE THE FUNDS HOWEVER I WANT?
Funds from a Reverse Mortgage can be used for ANYTHING: debt consolidation, daily expenses, regular and emergency medical bills, home repairs and improvements, travel, big-ticket purchases, gifts ... there are no restrictions on spending your Reverse Mortgage money.
- HOW MUCH CAN I BORROW?
Several factors determine how much you can receive through a Reverse Mortgage: your age, current interest rates and either the appraised value of your home or the FHA's mortgage limits for your area - whichever is less. As a rule of thumb, the more valuable your home is, the older you are and the lower the interest rate, the more you can borrow.
Check out our REVERSE MORTGAGE CALCULATOR to see how much you may be eligible to receive.
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