Reverse Mortgages allows seniors, 62 and older, to leverage their home equity in order to provide supplemental income which in turn gives them more flexibility and financial support.
Reverse Mortgages
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Uses for a Reverse Mortgage Loan
- Pay off daily living expenses
- Cover emergency expenditures, such as a car or home repairs
- Pay for medical bills
- Pay for home care
Learn the different types of reverse mortgages and which type of reverse mortgage might be right for you. Please contact your mortgage advisor so they can better assist you.
How Does it Work?
With a regular mortgage you pay the lender every month in order to purchase a home after a set duration of time. However, a reverse mortgage is a loan where the lender gives payment to you from the equity of your home. Normally, the money you receive is tax free, but when you leave the home permanently the loan must be paid back by either the homeowner, spouse, or by the estate.
Example: If your home is valued at $400,000 with $200,000 in equity, you may be able to borrow up to $100,000 dollars from your equity and use it as income. However, the money borrowed must be paid off whenever the homeowner permanently leaves from the home.