Reverse Mortgages:the Facts


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With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you may get a loan based on your equity. The loan does not have to be paid back until the borrower sells the home, moves away, or dies. At the time your home has been sold or is no longer used as your primary residence, you (or your estate) have to pay back the lender for the funds you got from your reverse mortgage as well as interest and other fees.

Are you Eligible?

The requirements of a reverse mortgage generally are being sixty-two or older, maintaining your house as your primary living place, and holding a low balance on your mortgage or having paid it off.

Reverse mortgages are ideal for retired homeowners or those who are no longer working and must supplement their income. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The lender will not take away your home if you live past the loan term nor can you be forced to sell your home to repay the loan amount even if the balance grows to exceed current property value. If you would like to find out more about reverse mortgages, please contact us at 719-638-0531.