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How Reverse Mortgages Work

A Reverse Mortgage will provide eligible homeowners, 62 years of age or older, the ability to turn the equity in their home into tax-free cash flow. For more information, call us at (800) 294-3896.

Reverse Mortgage Counseling

A Reverse Mortgage can assist in providing a tax-free cash flow to eligible homeowners 62 years of age or older. The Reverse Mortgage allows homeowners access to money that they have built up as equity in their homes. Primarily, the mortgage is designed to strengthen seniors personal and financial independence by making funds available to the homeowner, without the obligation of a monthly payment while in the home.

Contact a Reverse Mortgage Counselor Today!

What are the benefits of a Reverse Mortgage?

  • No loan repayment for as long as you reside in your home
  • Tax-free funds for as long as you reside in your home
  • Retain ownership of your home for life, a guaranteed benefit as long as you maintain your home, pay insurance, and pay property taxes
  • Choose a cash flow plan adequate to your needs
  • No restrictions on how to use the funds

What You Need to Know About a Reverse Mortgage

Question: Can the lender take my home away if I outlive the loan?

Answer: No! Nor is the loan due. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home’s value.

Question: Why is it important to speak with a housing counselor from a HUD-approved agency?

Answer: There are risks, obligations and costs associated with obtaining a reverse mortgage loan. Its important to understand and carefully consider your decision.

Question: Will I still have an estate that I can leave to my heirs?

Answer: When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by the reverse mortgage. This debt will never be passed along to the estate or heirs.

Question: How can I find out if a Reverse Mortgage is right for me?

Answer: A Reverse Mortgage counseling session is required if you’re interested in obtaining a Reverse Mortgage. Credit.org offers non-obligatory counseling sessions that facilitate this requirement.

Question: How do I receive my payments?

Answer: You have five options:

  • Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
  • Term – equal monthly payments for a fixed period of months selected.
  • Line of Credit – unscheduled payments or installments, at times and in amounts of borrower’s choosing until the line of credit is exhausted.
  • Modified Tenure – combination of line of credit with monthly payments for as long as the borrower remains in the home.
  • Modified Term – combination of line of credit with monthly payments for a fixed period of months selected by the borrower.

 

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