Reverse mortgage proceeds can be used for virtually anything, it is completely up to you
- Supplement your retirement income
- Help fund healthcare costs
- Pay for home repairs or modifications
- Retire existing debt, even a mortgage
- Cover property taxes
- Help prevent foreclosure
- Secure a cash reserve for emergencies
With the aging of our population, and the anticipated financial needs of mature homeowners it is easy to see why a reverse mortgage is a retirement tool whose time has come. It is a popular home loan that was created specifically for senior homeowners, 62 years and older, who want to convert part of their home’s equity into cash.
This is a non-recourse loan and a resource to generate financial support for the senior. The loan is repaid when you cease to occupy your home as a primary residence, whether you (the last remaining borrower, in cases of couples) pass away, sell the home, or permanently move out. The lender can only look to the property for repayment so you will never be responsible for more than what your home is worth when the loan is due.
Additional protections include mandatory counseling and lifetime caps on adjusted interest rates.
* Homeowners must continue to pay insurance and property taxes.
Today’s Seniors Use Reverse Mortgages to Make a Difference in Their Lives – You can, too!
- Retain title to your home*
- Enrich the quality of your life with the extra retirement funds
- Capitalize on your home’s equity without having to move
- No income, credit, or health background qualifications
- No monthly mortgage payments
Best of all, you get to decide how to receive your money:
- All at once, in a lump sum
- Fixed monthly payments either for a set term or for as long as you live in the home
- Line of credit, which is the most common option, allows you to draw on proceeds any time
- Or, a combination of the above
Is a Reverse Mortgage Right for You?
We realize that your home is probably the largest asset you own and using its equity in a reverse mortgage requires serious thought. It may not be for everyone; however, a reverse mortgage is all about making the most of the equity that you have acquired. This popular home loan has been helping seniors for more than a decade and their desire to do so is usually supported and encouraged by the seniors’ adult children.
There are up-front costs associated with a reverse mortgage, so you may want to consider other options if you plan to stay in your home for only 2 to 3 more years. Since every senior situation is unique, it is important that you talk to someone you can trust when exploring your reverse mortgage options, the various types available or to simply get answers.
A HECM Reverse Mortgage
The proceeds you may be eligible to receive depends on several factors:
- Your age (or the age of the youngest borrower, in the case of co-borrowers)
- Your appraised home value
- Current interest rates
- Lending limit in your area
As long as you have enough equity in your home you may qualify for a reverse mortgage. Basically, the older you are and the more valuable your home, the more money you can receive. Your home must be your primary residence. Eligible property types include:
- Single family homes
- 1-4 unit properties
- Some manufactured homes
- Condominiums and townhouses
The Home Equity Conversion Mortgage (HECM) loan is the oldest and most common reverse mortgage and is an FHA-insured (Federal Housing Administration) program for homeowners age 62 and over. Please contact us for the maximum loan limit in your area.
A unique feature of the HECM loan is the MIP (Mortgage Insurance Premium). This is required by and paid to HUD to insure the mortgagee against losses. HUD also guarantees the borrower their funds will be available if the lender or servicer is not able to make payments.
Call us today and find out if a reverse mortgage is right for you!
(800) 486-8786 x778
Reverse Mortgage Specialist
2 Walnut Street
Burlington, MA 01803
iReverse Home Loans, LLC is a Equal Housing Lender
People portrayed are professional models and are used for illustrative purposes only. Not all products and options available in all states. Terms and conditions subject to change without notice.