Just The Facts

What is a Reverse Mortgage?

A Reverse Mortgage is a loan designed specifically for senior homeowners that converts the equity in their home to cash that can be used to provide supplemental income for monthly living expenses, medical bills, in-home health care, home improvements or major purchases.

How old must I be to qualify for a Reverse Mortgage?

All parties on title must be at least 62 years old

How do I receive my money?

Borrowers can choose to receive the mortgage funds as a lump sum, monthly income, line of credit, or any combination.

Are the payments I receive taxable?

No! The payments are not subject to income tax because you are just borrowing on your home. Since you already paid for your home once, you should not have to pay for it again.

How will the interest rate affect my payments?

Interest rates are set at the date of application or date the loan closes. The interest rates affect the balance of how much is due at the end of the loan term. The interest on this loan adjusts monthly, every six months or annually, whichever you choose.

Do I still pay property taxes and insurance on my property?

Yes! You must still pay property taxes and maintain your hazard insurance.

Can my spouse continue living in our home and receiving benefits if I pass away?

If your spouse is a legal co-owner of the home, he or she can continue to live in the home, and continue to receive the existing benefits. The loan balance would be due and payable only when your spouse passes away or decided to move.

Can I be forced to sell my home if the money I owe on the loan exceeds the value of my home?

No! As long as you continue to occupy the property as a principal residence, you will not be forced to sell or vacate your home even if the total of the mortgage payments made to you, plus interest, exceed the value of the property. No deficiency judgment may result from your loan-There will NEVER be a debt to the heirs or the family.

Who will be entitled to the money if the home appreciates in value during the life of the loan?

Any money remaining after the mortgage is paid goes to you or, upon your death, to your heirs.

What if I would like to sell my home?

If you decide to sell your home, the outstanding balance becomes due and payable. You, or your heirs, will receive any proceeds exceeding the loan balance.

When is the loan due?

When none of the borrowers reside in the home, the loan is due. The family or heirs can sell or refinance the home and pay off the loan as with any other loan on the property.