Reverse Mortgage
For homeowners age 62 and older, a reverse mortgage can provide a way to access home equity while continuing to live in the home. Depending on the homeowner’s goals and circumstances, the proceeds may be used to supplement retirement income, pay off an existing mortgage, cover expenses or provide additional financial flexibility.
Reverse mortgages work differently from traditional mortgages, so understanding the structure, costs and long-term considerations is an important part of determining whether one is appropriate.
REVERSE MORTGAGE OPTIONS MAY INCLUDE
- Accessing a Portion of Available Home Equity
- Paying Off an Existing Mortgage
- Receiving Funds as a Lump Sum, Line of Credit or Scheduled Payments, depending on the program
- Purchasing a New Primary Residence Using a Reverse Mortgage
- Refinancing an Existing Reverse Mortgage, when eligible
HOW A REVERSE MORTGAGE WORKS
With a reverse mortgage, eligible homeowners can convert a portion of their home equity into loan proceeds without making required monthly principal and interest payments. The borrower remains responsible for property taxes, homeowners insurance, property maintenance and other applicable property charges.
The loan generally becomes due when the last borrower permanently leaves the home, sells the property or otherwise triggers a repayment event under the loan terms.
IS A REVERSE MORTGAGE RIGHT FOR YOU?
A reverse mortgage can be a useful financial planning tool in the right circumstances, but it isn’t appropriate for everyone. I can help you understand how the financing works, review the available options and determine whether it fits your goals.
Discuss Your Options