A reverse mortgage is a loan that allows you to use the equity you’ve accumulated in your home over the years to improve your quality of life and regain your financial independence. By converting your home equity into income, a reverse mortgage is a way to maintain living your home while receiving cash to use, tax-free, for anything from day to day living expenses, home remodeling, paying off existing debt, or even traveling the world. Best of all, you retain the title to your home and you remain living in your home.

Homeowners who are at least 62 years and older qualify, even if there is an existing first or second mortgage. A reverse mortgage can give them tax-free cash for what they want or need by allowing them to safely tap into their home equity. There are no income qualifications. The amount you could receive from a reverse mortgage depends upon your age, the type of reverse mortgage you choose, the home’s value, the balance due on any mortgages on the home, and interest rates.

For as long as a reverse mortgage is outstanding, there are no monthly mortgage payments due. The loan becomes due and payable when the borrower no longer occupies the home as a primary residence. This typically occurs upon the sale of the home, or if the owner permanently moves to another primary residence, or passes away.

Back