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 Reverse Mortgages
Reverse mortgages enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment, a line of credit or a combination of the three. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.
Reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. The money is nontaxable1 and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.
If you could benefit from extra cash to supplement your existing income, reduce credit card debt, cover medical expenses, help a loved one or just enjoy life a bit more, a reverse mortgage may be right for you.
For many, a reverse mortgage can be a solid financial tool that may improve quality of life.
Deciding if a reverse mortgage is right for you or someone you care about is an important decision. We encourage you to take your time, understand your options, discuss them with those you trust and feel free to contact us for assistance at any time.
1 Consult your tax professional to determine the tax effect of a reverse mortgage.
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