If you are a homeowner 62 or older, a reverse mortgage could be
the way to get the extra cash you need.
Benefits to you:
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Q. |
What is a Reverse Mortgage? |
| A. |
It a program designed for senior homeowners 62 years of age or
older that have paid up their mortgage or have a small amount of
mortgage balance left on their home. The equity in your home can
be unlocked to be used for living expenses, repairs, vacations,
a line of credit or monthly payments. Best of all, the money
received is not taxable since it is not considered as income,
but rather a loan. You will never be forced to leave the
security of your home or make any payments. |
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|
Q. |
Who Qualifies for a Reverse Mortgage? |
| A. |
Seniors who are at least 62 years old,
Own and occupy the property as the primary residence,
Pay off any existing liens on the property, and
Attend a free seminar with a HUD approved reverse mortgage
counselor. |
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|
Q. |
Are There any Restrictions on the Funds I Borrow? |
| A. |
There are no restrictions on the money you receive from a
reverse mortgage
You can use the money:
To pay off any existing loans on the property,
To pay off debt, such as high interest rate credit cards,
To cover monthly expenses,
To pay for medical care or in-home health care,
For home improvements
To travel, and
For any other uses. |
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|
Q. |
How Much Money Can I Borrow? |
| A. |
There are three factors that determine how much you can borrow.
Your age,
Appraised value of the house, and
Current interest rate.
We can help you determine how much you can borrow. |
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|
Q. |
What Are My Borrowing Options? |
| A. |
There are several options on how you can receive the funds that
depend on your needs:
Set up a line of credit to use the funds, as you need them.
Get a lump sum of all the funds
Set up a tenure plan to receive a certain sum of funds for the
rest of your life.
Set up a term plan to receive a certain sum of funds over a
specified time period.
You can combine any combination of the above plans or change
plans any time as your needs change. |
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Q. |
How is the Loan Repaid? |
| A. |
The loan becomes due when you no longer live in the house, when
you or your estate sells the house or if you choose to
refinance. |
Questions still not answered? Read MORE Reverse Mortgage FAQS.
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