Reverse Mortgage

reverse_mortgage

Reverse Mortgage

Financing With a Reverse Mortgage

This program was designed to help Seniors stay in their homes. Even so, it’s not for everyone. Read the brochure, Using Your Home to Stay in Your Home, put out by the National Council for Aging, to see if this is the right decision for you.

Reverse Mortgages

  • Must be 62+ to qualify for this program designed to help Seniors stay in their homes
  • Payments are made by the lender to the borrower, in reverse, and the size of the payments is dependent upon many factors including how much equity there is in the home, the borrower’s age, current interest rates, and other factors.
  • Borrowers usually have a choice of receiving the proceeds from a reverse mortgage in the form of a lump-sum payment, fixed monthly payments for life, or line of credit.
  • The interest rate charged on a reverse mortgage is usually an adjustable rate that changes monthly or yearly. However, the size of monthly payments received by the senior doesn’t change.
  • Seniors do not have to meet income or credit requirements to qualify for a reverse mortgage.
  • The repayment obligation for a reverse mortgage is equal to the principal balance of the loan, plus accrued interest, plus any finance charges paid for through the mortgage. This repayment obligation, however, can’t exceed the value of the home.
  • In general, a borrower can’t be forced to sell their home to repay a reverse mortgage as long as they occupy the home, even if the total of the monthly payments to the borrower exceeds the value of the home.
  • This is a complex financial tool and you should talk with us in depth to see if a reverse mortgage can help you “age in place” more affordably.