Are you wondering if you or someone you love may qualify for a reverse mortgage and how the process works? Here are some fast facts to help. Reverse mortgages are available to many older homeowners and the funds are yours to do with what you wish.
Do I qualify?
• Age 62 or older
• The home you own must be your primary residence
• Have enough equity in the home to pay off existing mortgage (if applicable)
• Married couples are eligible to both be on the loan if both borrowers are age 62 or older (if only one spouse is age qualified, then only that spouse can be on the loan)
How much money can I receive?
• The older you are the more money you can receive with the calculation based on the age of the youngest borrower
• The amount you can receive is based partly on the appraised value of your home
• The current interest rate will also be a factor in the amount of money you can receive with interest rates changing weekly
How do I receive the money?
• Line of credit
• A combination of the options above
• Reverse Mortgage for Purchase
Who will own my home after if I get a reverse mortgage?
• YOU! You will always remain the homeowner and always retain the title
What will my personal ongoing obligations be after obtaining a reverse mortgage?
The homeowner will be responsible for:
• Property taxes
• Homeowner’s insurance
• HOA fees (when applicable)
• Basic upkeep and utility payments
When does the loan become due and payable?
A reverse mortgage does not reach “maturity” until:
• the last remaining borrower passes away
• the homeowner sells the home
• the last remaining borrower leaves the home for 12 consecutive months
• the homeowner defaults on property taxes or insurance