Reverse Mortgage 

How a Reverse Mortgage Works

The amount a homeowner can borrow depends on factors such as age, home value, current interest rates, and available equity. Funds can be received as a lump sum, monthly payments, a line of credit, or a combination of these options.

Common Benefits

• Access cash while continuing to live in your home.
• No required monthly mortgage payments.
• Funds can be used for any purpose, including retirement income, healthcare expenses, home improvements, or debt repayment.
• Homeownership remains with the borrower as long as loan obligations are met.

Eligibility Requirements

• At least one borrower must be 62 years or older.
• The home must be the borrower's primary residence.
• The homeowner must have sufficient equity in the property.
• Borrowers must continue paying property taxes, homeowners' insurance, and maintain the home.

Important Considerations

• Interest and fees accrue over time, increasing the loan balance.
• Home equity decreases as the loan balance grows.
• Heirs may need to sell the home or refinance the loan to keep the property.
• Borrowers must meet ongoing property-related obligations to avoid default.