NOW OFFERING REVERSE MORTGAGES

WHAT IS A REVERSE MORTGAGE?

A reverse mortgage uses the equity in your house to give you cash to use now without having to repay the loan as long as you continue to live in your home. You remain the owner of the home and are still responsible for paying your property taxes and homeowner’s insurance.

WHO QUALIFIES?

Homeowners who are at least 62 years old. Their home must be their primary residence, not a vacation or part time home.

HOW MUCH CAN I BORROW?

The amount varies with each loan program. Generally the older you are the more cash you can get and the more your home is worth, the more cash you can get.

WHEN DO I PAY IT BACK?

When the last surviving borrower dies, sells the home or permanently moves away. You may be required to pay your reverse mortgage if you fail to pay your property taxes, homeowner’s insurance or let your home go to waste.

HOW DOES IT WORK?

A reverse mortgage is a “rising debt – falling equity” loan. This means that the amount you owe keeps growing larger while your home equity (your home value minus loans against it) keeps growing smaller.
After the lender determines how much cash you are entitled to, you can take the cash in one of three ways: A lump sum payment, A line of credit that lets you take cash advances as needed or A monthly cash advance.
Each month the interest that has accrued is added to the principle balance.

WHAT IS THE MOST I CAN OWE?

The total you will owe at the end of your loan will be a total of:
All the cash you have received
All the cash that was used to pay closing costs
All the accrued interest
Note: You can never own more than the value of the home at the time that the loan is repaid. Since reverse mortgages are “nonrecourse” loans, the lender does not have recourse to anything other than your home, not your income, not your other assets, not the income or assets of your heirs.

HOW DO I PAY IT BACK?

If you sell and move you would pay back the loan from the monies received in the sale. You can also pay the loan from other funds if available. If the loan ends due to the death of the last surviving borrower, your heirs must repay the loan by selling the house, or using funds from the borrower’s estate or by taking out a regular mortgage against the home.