REVERSE MORTGAGE HIGHLIGHTS

A reverse mortgage is a type of home equity loan that allows homeowners to convert part of the existing equity in their home into cash while retaining full ownership of the property. * Equity is the current market value of a property minus any existing current loan balance.

A reverse mortgage works in much the same way as a traditional mortgage, except, instead of the homeowner paying the lender each month, the lender pays the homeowner, and, for as long as the borrowing homeowner continues to live in the home, no repayment is required.

Proceeds received from a reverse mortgage may be used for any purpose - including, but not limited to housing or medical expenses, income or property taxes, insurance, existing revolving debt payoff, or even a well-deserved vacation!

To apply for a reverse mortgage, you must be at least 55 years of age, own your current home, or plan to use the reverse mortgage as a purchasing tool for your retirement home (down payment required).

Reverse mortgage loan proceeds may be taken as a lump sum at close of escrow, monthly advances, a line-of-credit (ask about interest-bearing lines of credit), a combination of the three, or to simply pay off any current existing mortgage payment(s) - depending on the reverse mortgage product type selected; The exact amount of money you are eligible to borrow depends on your age, the current appraised value of your home (or purchase price of selected new home for purchase), and current lender interest rates.

A reverse mortgage only becomes due when the homeowner permanently vacates the property (6 months or greater out of the year). If the homeowner passes away while still occupying the home, the lender does not take immediate ownership of the property - heirs have 12 months to pay off the loan, typically by refinancing the loan into a traditional forward mortgage, or by using proceeds generated by a sale of the property.

Most importantly reverse mortgages offer peace of mind in knowing that no matter what happens in today’s economy, any potential health concerns, unforeseen home repairs, and/or maintenance issues, the reverse mortgage borrower enjoys affordable housing while staying in their “home” of choice!

When considering the option of a reverse mortgage, it is often a decision that is shared and discussed within the family. Reverse mortgages are able to give family members the ability to retain financial independence, by accessing the wealth they have in their homes, while allowing them to live comfortably in their own homes on their own terms.