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What
is a reverse mortgage?
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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. |
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Who
is eligible?
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You
must be age 62 years or older and occupy your home as your primary
residence. |
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How
can the money be spent?
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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! |
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How
can the money be received?
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-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. |
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How
is interest charged?
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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. |
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Do
I still own my home?
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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. |
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Can
I pay down the reverse mortgage?
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Yes,
you may make payments if you like or pay the loan completely off without
penalty. |
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Are
there costs to apply?
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It
costs nothing to apply. All closing costs are financed
into the loan. |
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What
if my credit is bad?
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That's
okay because you don't have to make any payments- there are no income
or credit qualifications. |
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Do
I have to pay taxes on the income I receive?
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The
proceeds from the reverse mortgage are non-taxable. Consult your tax
advisor. |