A reverse mortgage is a loan available to people over 62 years of age that enables a borrower to convert part of the equity in their home into cash or tax-free income.
Reverse mortgages were developed to help people in or near retirement to take advantage of the equity they have built in their home without having to sell it. Homeowners can use the money to pay off debts (including traditional mortgages), cover basic monthly living expenses or pay for health care. However, there is no restriction on how a borrower may use the cash they get from their reverse mortgage.
The loan is called a reverse mortgage because the traditional mortgage payback stream is reversed. Instead of making monthly payments to a lender (as with a traditional mortgage), the lender makes payments to the borrower.
The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as you live in the home, you are not required to make any monthly payments towards the loan balance, but you must remain current on your tax and insurance payments.
Reverse mortgages are available to most home owners that are 62 years of age or older with equity in their home. To find out if you qualify, simply complete our free online Reverse Mortgage Questionnaire or contact us for a no obligation or pressure consultation. We're local mortgage professionals that will provide straight and honest answers without the hard sell.