Reverse Mortgages:the Facts

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Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without selling their home. Deciding how you'd like to be paid: by a monthly payment, a line of credit, or a one-time payment, you may take out a loan amount determined by your home equity. Repayment is not necessary until the borrower sells the property, moves (such as to a care facility) or dies. You or representative of your estate is required to repay the reverse mortgage funds, interest accrued, and other finance fees after your house is sold, or you are no longer living in it.

Who is Able to Participate?

The requirements of a reverse mortgage normally are being 62 or older, using the property as your main living place, and holding a small remaining mortgage balance or having paid it off.

Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck but must supplement their fixed income. Interest rates can be fixed or adjustable while the funds are nontaxable and do not interfere with Social Security or Medicare benefits. The lending institution is not able to take away your property if you live past the loan term nor will you be forced to sell your residence to pay off your loan even if the loan balance grows to exceed property value. If you'd like to find out more about reverse mortgages, feel free to contact us at 561-395-4264.

Alternative Mortgage Group can answer questions about reverse mortgages and many others. Give us a call at 561-395-4264.