Reverse Mortgages

Reverse mortgages are for seniors, age 62 and older, and provide a tax-free source of income.

A reverse mortgage is a home loan that allows you to access your home's equity that you, the homeowner, have gained over the years. This home loan does not require a monthly payment like a traditional mortgage or second mortgage, and it does not require you to repay the loan it until the home is sold, the homeowner moves away, or until they pass away. Even if you outlive the life of the reverse mortgage, you do not have to repay the loan as long as you are still living in the house, and as long as you keep current with your taxes and home insurance.

There are no restrictions on how you spend your money. You can pay your bills, your medical expenses, supplement your social security, improve your home, and you can even go on vacation.

The difference between a reverse mortgage and a second mortgage or home equity line of credit is that a reverse mortgage pays you! There are no income requirements, and you do not have to pay any monthly payments. The loans all provide adequate time for your heirs to sell or refinance the home in the future, to be sure your assets go to your love ones.

The amount you can borrow depends on your age, current interest rate, and the appraised value of your home or FHA's mortgage loan limits for your area, whichever is less. Generally the more valuable your home is, and the older you are, the more you can borrow.