Reverse Mortgages For Purchase or Refinance

Reverse Mortgage Details

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Until recently, there were two ways to get cash from your home:

  • Sell your home - requires you to move.
  • Borrow against your home - requires you to make monthly loan repayments.

Reverse mortgages offer a third option for getting money from your home. You do not have to sell your home or make regular loan repayments.

Get the facts about your personal situation. Call or e-mail to arrange a free with no obligation consultation to learn what opportunities a reverse mortgage can offer.

NRMLA , The National Reverse Mortgage Lenders Association has been working hard to make reverse mortgage easier to understand and these new reference booklets have hit the spot!
Plain English, straight to the point and easy to understand these booklets will help you understand some of the finer points of a reverse mortgage.  
Feel free to download, save or forward to a friend and call me to discuss your specific situation.

Reverse Mortgage Self Evaluation

What You Need to Know After Closing Your Reverse Mortgage

What To Do When My Loan is Due


Reverse Mortgage Uses and Benefits


 BUY your next home with a Reverse Mortgage!


Who's Eligible?

A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there. It can be paid to you all at once, as a regular monthly advance, or at times and in amounts that you choose. You pay the money back plus interest when you die, sell your home, or permanently move out of your home.

All owners of the home must apply for the reverse mortgage and sign the loan papers. All borrowers must be at least 62 years of age for most reverse mortgages. Owners must occupy the home as a principal residence (where they live the majority of the year). 

Single family one-unit dwellings are eligible properties for all reverse mortgages. Some programs also accept 2-4 unit owner-occupied dwellings, along with some condominiums, planned unit developments, and manufactured homes. Mobile homes and cooperatives are generally not eligible.

How They Work

Reverse mortgage loans typically require no repayment for as long as you live in your home. But they must be repaid in full, including all interest and other charges, when the last living borrower dies, sells the home, or permanently moves away. Because you make no monthly payments, the amount you owe grows larger over time. As your debt grows larger, the amount of cash you would have left after selling and paying off the loan (your "equity") generally grows smaller. But you can never owe more than your home's value at the time the loan is repaid.

Reverse mortgage borrowers continue to own their homes. So you are still responsible for property taxes, insurance, and repairs. If you fail to carry out these responsibilities, your loan could become due and payable in full.

What You Get

Benefits of Reverse Mortgage

These loans can be paid to you all at once in a single lump sum of cash, as a regular monthly loan advance or as a creditline that lets you decide how much cash to use and when to use it. Or you may choose any combination of these payment plans.

The amount of cash you can get from a reverse mortgage depends on your age, your home's value, and the prevailing interest rate for the program chosen. The greatest cash amounts typically go to the oldest borrowers.

The amount of cash you can get also depends on the specific reverse mortgage plan or program you select. The differences in available loan proceeds can vary greatly from one plan to another.

What You Pay

Reverse mortgage fees have gone down in recent years making them more affordable than ever.  Lower mortgage insurance factors play a big part. 

Taxes, Estates & Public Benefits

Reverse mortgages may have tax consequences, affect eligibility for assistance under Federal and State programs, and have an impact on the estate and heirs of the homeowner.

An American Bar Association guide states that generally "the IRS does not consider loan advances to be income." The guide explains that if you receive SSI, Medicaid, or other public benefits loan advances are counted as "liquid assets" if you keep them in an account past the end of the calendar month in which you receive them. If you do, you could lose your eligibility for these programs if your total liquid assets (for example, money you have in savings and checking accounts) are greater than these programs allow.

Common Misconceptions

YOU NO LONGER OWN YOUR HOME. This is totally untrue. You retain ownership to your home AND you or your estate retains any equity after the reverse mortgage is paid off. 

YOU HAVE TO HAVE 100% EQUITY TO GET A REVERSE MORTGAGE. If you have a mortgage you may still benefit from a reverse mortgage. Most borrowers are paying off some sort of debt. 

YOU HAVE TO BE IN GOOD HEALTH. Your health is not considered as a part of the underwriting decision. 

YOU WILL BE KICKED OUT OF YOUR HOUSE WHEN YOU HAVE USED UP THE MONEY. You never have to leave your home as long as you keep current on your taxes and insurance and it is still your primary residence.

Use Your Home To Stay At Home Booklet


Note From Sharron About Reverse Mortgage:

I have seen this product change lives.  From simple things like a vacation or a car purchase to very important things like paying for medications or keeping the heat on.

 Improve your quality of life with a reverse mortgage:

  • Renovate your home
  • Pay for healthcare or medication for yourself or a loved one
  • Pay off a mortgage
  • Settle a divorce or bankruptcy
  • Increase monthly cash flow
  • Travel
  • Retire
  • Gift money