When A History Of Home Ownership Pays Off
If you are 62 or older and own your home, you are uniquely qualified to benefit from a reverse mortgage. This loan program is designed to help qualifying borrowers get access to their equity, stay in their home, and rid themselves of a monthly mortgage payment.*
A reverse mortgage gives you access to the equity that you have built up in your home over the years through principal payments, your down payment, and appreciation. You can receive this equity TAX FREE to use however you want.
• Retirement funding
• Vacation or travel
• Home repairs
• Medical Bills
With a traditional mortgage, you pay a monthly payment to a lender. With a reverse mortgage, the payment is made to you. How would you like to receive your equity?
• One lump sum
• Monthly payments
• Line of credit
You can choose these, or any combination, when you receive your equity from a reverse mortgage.
With a reverse mortgage, you stop making monthly payments on your mortgage. The amount owed then becomes a lien on the property. Any equity that you choose to have paid to you is added to that lien amount, with any interest accrued.
At the end of the reverse mortgage period, when you no longer occupy the home, the amount owed is either the mortgage balance or the value of the home, whichever is lesser.
A reverse mortgage can be a powerful tool to give you access to the equity that you have built up in your home over the years. It is not right for everyone, and if your financial goals include paying your mortgage off faster, than a reverse mortgage is not for you. However, if you have built up equity over the years and you want to get cash from your home or stop paying monthly mortgage payments, than a reverse mortgage is an excellent program to consider.