Reverse
Mortgage? A reverse mortgage is a loan that allows
the homeowner to convert some equity in their home into cash or
a monthly income. Rather than the borrower having to pay the lender
monthly, the lender pays the borrower.
The borrower is able to take a lump sum or monthly payments
rather than making 
payments!
Who
is eligible?- All property owners must be 62 years of
age - The home must be the principal residence- Must own the home
free and clear or have a small mortgage balance The current mortgage
be payed on every month will be payed off first allowing access
to the balance of the equityto qualify - Income is not needed.
How
much cash can the borrower receive? - The amount of cash
a borrower is able to receive with a reverse mortgage depends
on the borrower's age, the home's value, the location of the home
and the current interest rates.
A local reverse mortgage specialist can give you more details
on how this works.
How
you get paid? - Borrowers can elect to receive their
money in monthly payments, a line of credit, a lump sum or a combination
of these.
How are interest rates calculated? - Interest
rates are calculated using a formula set by the federal government.
The interest rate at the time of closing is the initial rate for
the loan. Borrowers have the option of choosing an adjustable
rate or an annually adjustable rate. All interest rates for reverse
mortgages are adjustable.
When
do reverse mortgages need to be paid back? - When the
last surviving borrower dies- When the home is sold - When the
borrowers move out
How
much will be owed when it needs to be paid back? - The
total amount owed at the end of the loan equals all of the cash
advances the borrower has received, plus the accrued interest.
