Reverse Mortgages enable homeowners age 62 and over to borrow against the equity in their homes without having to sell the home, give up title to it, or assume a new monthly mortgage payment. The name “reverse mortgage” is appropriate because the payment flow is reversed whereby instead of you making monthly payments to a lender (like a regular mortgage), the lender makes payments to you.
Who THEY'RE for:
- Homeowners at least 62 or older with built-up home equity.
- Senior homeowners in need of cash flow to cover other expenses.
- Senior homeowners who want to eliminate mortgage payments.
- Borrowers who want to have improved quality of life.
WHAT ARE THE BENEFITS?
No More Mortgage Payments for Life
Supplement Retirement Income
Make Home Improvements or Repairs
Pay Property Taxes
Cover or Pay Off Medical Expenses
Ability to Travel
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MEET THE TEAM
Reverse Mortgage Specialist
FREQUENTLY ASKED QUESTIONS
Is there more than one type of Reverse Mortgage?
There are two basic types of Reverse Mortgages to consider:
- Home Equity Conversion Mortgages, know as HECM, are what make up the majority of Reverse Mortgages. These are insured by the Federal Housing Administration in addition to HUD and can provide a greater loan advance than other reverse mortgages and may include a line of credit that can appreciate.
- Private Cash Account Reverse Mortgages typically apply to homes with an appraised value in excess of $500,000. While this loan may have higher closing costs, it still has the same options for distribution. A line of credit may be offered as an added benefit.
What kinds of homes are eligible for reverse mortgages?
The property must be a single family or a two-to-four unit dwelling. This eligibility includes detached homes, Town Homes, Condominium units, planned unit developments (PUDs), and some manufactured homes (built after June, 1976). All homes must be the borrower’s primary residence and meet HUD minimum property standards (in some cases, home repairs can be made after the closing of the HECM).
Can we get a Reverse Mortgage if we have an existing mortgage?
Yes, although your new Reverse Mortgage must be in a first-lien position so any existing indebtedness must be paid off. You can pay off the existing mortgage with proceeds from your Reverse Mortgage, money from your savings, or assistance from a family member or friend.
Since a Reverse Mortgage is a loan, when must it be paid back?
There are no monthly payments due on a reverse mortgage as long as it remains outstanding. The loan is due and payable only when you no longer occupy the property as your principal residence or fail to comply with the loan agreement. There is no requirement that the property be sold, only that the loan be repaid. If the home is sold, and proceeds from that sale exceed the amount owed on the Reverse Mortgage, that excess money goes to you or your estate.
Are there restrictions on how Reverse Mortgage proceeds can be used?
There are no restrictions on how it can be used because the money is 100% yours. It can be used anyway you want including to pay off existing bills and credit cards, to remodel your home, buy a car, take a vacation, or simply to retire in comfort.
"I had no idea a Reverse Mortgage could be so beneficial."
- Gina, OR