Reverse Mortgages:the Facts

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In a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Deciding how you would prefer to to receive your funds: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your home equity. The borrowed money does not have to be repaid until the homeowner sells his residence, moves away, or dies. You or your estate representative is required to pay back the reverse mortgage amount, interest accrued, and finance charges at the time your home is sold, or you can no longer call it your primary residence.

Who can Participate?

Typically, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against the home and maintain the home as your principal living place.

Reverse mortgages are great for homeowners who are retired or no longer working but have a need to supplement their fixed income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't adversely affect Medicare or Social Security benefits. Your lending institution cannot take the property away if you live past the loan term nor may you be required to sell your residence to pay off the loan amount even when the balance is determined to exceed current property value. Call us at 561-395-4264 to look into your reverse mortgage options.

Alternative Mortgage Group can walk you through the pitfalls of getting a reverse mortgage. Give us a call at 561-395-4264.