Reverse Mortgage Facts

  ·         No income or credit needed to qualify.

·          Proceeds are treated as tax-free income.

·          Interest is paid at the time the loan is repaid-not during the loan.

·          At the time the loan becomes due and payable, the heirs can either choose to repay the loan and keep the house or sell the home and repay. Heirs will also receive remaining equity, if any after sale of home.

·          Loan does not become due and payable until the last surviving borrower dies, sells the home or permanently leaves the residence.

·          Benefits received from Social Security and Medicare are not affected by a reverse mortgage.

·          Borrowers retain title to the home.

Loan Amount

The amount of the loan depends     primarily upon 3 factors:

·          The age of the youngest borrower

·          Value of the home

·          Current Interest Rates

Several Ways To 
                                                      Receive Proceeds

Proceeds from a Reverse Mortgage can be received in any combination of the following:

·          Lump Sum of Money

·          Monthly Payments

·          Line of Credit  

       

 

    

  ·      Home Repairs/Maintenance

·          Home Health Care

·          Car Repair or Purchase

·          Pay Off Credit Cards

·          Taxes

·          Pay Off Existing Mortgage

·          Grandchild’s Education

·          Travel

·          A Second Home

·          Investments