Reverse Mortgages
Reverse Mortgages
A Reverse Mortgage, also known as a home equity conversion mortgage (HECM), is a type of home loan for those 62 years old or older, that requires no monthly mortgage payments. This is an FHA-insured loan. A Reverse Mortgage loan allows people who are at least 62 years of age, or older, to pay off their forward mortgage loan or use the equity in their home for other reasons. To purchase or refinance a home with a Reverse Mortgage loan, a borrower must have at least 40 to 57 percent equity (depending on age).
The home loan is not required to be repaid until the house is sold or otherwise vacated. You are not required to make any monthly mortgage payments against the loan balance as long as you live in the house. You must pay your property taxes, homeowners insurance, and condominium fees (if you reside in a condo) on time, as well as keep the house in good condition.
Contact one of our Reverse Mortgage Specialists to find out if a Reverse Mortgage is right for you!
*Must be 62 years or older to qualify. Borrowers must have a minimum percentage of equity in the home to qualify. Other terms and conditions may apply.
Why Choose a Reverse Mortgage?
- There is no requirement for a monthly mortgage payment
- To qualify, you must have a minimum of 40-57 percent equity (according to age)
- A financial assessment is required.
- There are no credit score requirements.
- Mortgage insurance is required up front and on a monthly basis (MI)
- A benefit of a Reverse Mortgage refinance is the possibility of receiving monthly income or a lump sum payment.
Why We Chose a Reverse Mortgage
When health issues arose and we could no longer stay in our home because my husband needed a one level home. Knowing this would be our final home, we chose to do a Reverse Mortgage.
