So what is a reverse mortgage?
A reverse mortgage, formally known as a Home Equity Conversion Mortgage (HECM), is a loan for borrowers 62 years and older that converts their home equity into cash. The unique benefit is that you don’t need to pay it back month after month. Interest and fees are added to the loan balance over time. You simply continue to pay all property taxes, and insurance and uphold the terms of the loan.
What is the difference between a reverse and a traditional mortgage?
Both are mortgages on a property that belongs to you. Instead of paying into your home every month with a traditional mortgage, you pull money out with a reverse mortgage and repay the loan when you leave the home. These funds can come as a lump sum, installments, line of credit, or in a combination of these options. While the loan balance accrues interest over time, you are not required to make monthly mortgage payments on the loan as long as you live in the home.*
There are several types of reverse mortgages
We have a variety of reverse mortgage to choose from. The two most popular types are the traditional Home Equity Conversion Mortgage (HECM) and a suite of HomeSafe® reverse mortgage products. A HECM is insured by the Federal Housing Administration (FHA) and has a loan limit of up to $1,089,300. HomeSafe® reverse mortgages offer a variety of options, from standard to jumbo loans of up to $4 million with comparable protections to a HECM.*
Who is using a reverse mortgage and why?
The face of retirement has changed. People are living longer, more active lives, and they want more options in retirement. Whether it’s starting a new business, paying down debt or medical bills, taking that dream vacation, giving back, purchasing a new home, or just having extra income available for living expenses, millions of homeowners have leveraged the equity in their homes to work on their retirement goals.
*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid
Considering a Reverse Mortgage?
You’ve come to the right place. See the below video for a general product overview. Give us a call, text, or email us. One of our friendly associates is ready to assist you!
