What is a Reverse Mortgage?

If you are a senior over 62, with lots of equity in your home,
you'll want to know!

With a traditional mortgage, you make payments every month to repay what you’ve borrowed. A reverse mortgage is also a loan on your property, but the loan does not have to be paid back until the end of the loan, which is generally when you move, refinance or sell the property.

Reverse mortgages were designed to give homeowners who are 62 or older the opportunity to take advantage of the equity in their homes without having to qualify for a new traditional mortgage or home equity line.

There are no income requirements for a reverse mortgage, because the amount of the loan is based on factors like the value of the property, the balance of any existing mortgages and the age of the borrower.

With a reverse mortgage, you can turn the value of your home into cash, which can be paid to you in many ways:

• all at once, in a lump sum;
• as a regular monthly payment to you;
• as a "credit line" so you can decide when and how much of your available cash is paid to you
• or a combination of these payment methods

No matter how you access the cash, you typically don't have to pay anything back until you sell your home, permanently move out or pass away.

Another advantage of a reverse mortgage is that you are not at risk of losing your home by not making payments. Since a reverse mortgage doesn’t require monthly repayments, you can be assured that you will enjoy living in your home as long as you are able.

For more information about reverse mortgages, please contact National Mortgage Alliance at 800-621-6588.