What is a Reverse Mortgage?
A Reverse Mortgage allows homeowners 62 years of age or older the ability to access the equity and use the proceeds however you choose. The mortgage is a non-recourse loan, which means the homeowner will never be liable for more than the home is worth.
Reverse Mortgage FAQ
You will still own your home and can remain in it as long as you wish, provided you continue to pay the property taxes, insurance and maintain the home in good condition.
The amount of funds available are based on a number of factors including the product you select. The proceeds available are calculated based on the youngest homeowner’s age, current interest rates and the lesser of the appraised value of your home, sales price or FHA Maximum Lending Limit. Currently the FHA Maximum Lending Limit is $636,150.
If you currently have a mortgage on your home, the proceeds from the Reverse Mortgage is used to eliminate your current mortgage, in many cases homeowner’s obtain a Reverse Mortgage for this reason alone.
A Reverse Mortgage doesn’t typically impact your Social Security or Medicare benefits, but benefits do vary state by state; be sure to consult a benefits professional.
The Reverse Mortgage becomes due and payable when the last remaining homeowner sells the property, permanently vacates the home or passes away.
Yes. With a Reverse Mortgage Purchase Loan, qualified homeowners use their loan proceeds to purchase the home. Typically for downsizing or relocating to an active adult community or moving closer to their families.
* Borrowers should seek professional tax advice regarding reverse mortgage proceeds.
Did we miss anything? If you have a question, please contact Bob Adams using the form to the right. He'd be happy to discuss how a Reverse Mortgage can benefit your family directly.
Would you like to meet for lunch or have a chat? I'd love to discuss Reverse Mortgages with you!