A reverse mortgage is a unique loan that enables homeowners ages 62 and older to remain in their home and eliminate monthly mortgage payments. Loan amounts are based on the ages of homeowners, value and location of the home, and current interest rates. Income is not taken into consideration for qualifying purposes. The mortgage balance is not due until the last borrower ceases to occupy the home as their primary residence and will never exceed the value of the home.
The existing mortgages against the property will be paid in full with the loan process and remaining equity, based on loan limits, may be withdrawn in several ways:
- Lump sum payments
- Equal monthly payments
- Line of credit
- Combination of any of these three options
(Fixed Rate Reverse Mortgages only allow a lump sum cash advance)
Thousands of homeowners have used reverse mortgages as a powerful tool to enhance their retirement lifestyles.