What
is a reverse mortgage? |
It is a unique home loan for seniors where no monthly payments are required. It works in reverse where the lender makes payments directly to you. There is only one payment due, when you permanently leave your home whether you move, sell or pass away. |
Who
is eligible? |
You must be age 62 years or older and occupy your home as your primary residence. |
How
can the money be spent? |
Any way you choose: Life-time supplemental income, home improvements, pay off a mortgage, medical expenses, in-home nursing care, pay off debt, buy a new car, travel... The possibilities are endless! |
How
can the money be received? |
-Regular
monthly payments for as long as you live in your home or a specific
period of time. - A line of credit to draw from at any time. -Lump sum cash advance. -Combination of any of the above. |
How
is interest charged? |
Interest is charged only on the amount drawn and added to the loan balance monthly. The interest rate is adjustable and tied to market indexes. |
Do
I still own my home? |
Absolutely. You retain full ownership of your home. As with any mortgage, the lender has a lien against your property. Since you make no monthly payments, the loan balance increases over time. |
Can
I pay down the reverse mortgage? |
Yes, you may make payments if you like or pay the loan completely off without penalty. |
Are
there costs to apply? |
It costs nothing to apply. All closing costs are financed into the loan. |
What
if my credit is bad? |
That's okay because you don't have to make any payments- there are no income or credit qualifications. |
Do
I have to pay taxes on the income I receive? |
The proceeds from the reverse mortgage are non-taxable. Consult your tax advisor. |
