Reverse Mortgages
Reverse Mortgages
You have worked hard to build equity in your home. Now, it might make sense for you to tap into that equity. If you are over age 62 and have substantial equity in your home, you may be qualified for this government sponsored benefit program. With a reverse mortgage, you can:
- Stop making mortgage payments
- Consolidate your debt
- Increase your standard of living
- Make repairs to your home
- Take that dream vacation
- And much, much more
Best of all, qualification for a reverse mortgage is not based on income or credit!
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Most reverse mortgages require you be at least 62 years of age, have significant equity in your home, and maintain the property as your principal residence. Interest rates can be fixed or adjustable. And, the money you receive through your reverse mortgage is nontaxable and does not interfere with your Social Security or Medicare benefits.
Reverse mortgages (also called Home Equity Conversion Mortgages or HECM) enable elderly homeowners to tap into their equity of their homes without selling. The lender pays you money based on the equity you've accrued in your home. You can receive:
- a lump sum;
- a monthly payment; or
- a line of credit.
Because this is a government benefit program, reverse mortgages come with built-in protections. Your lender cannot take property away if you outlive your loan. Nor can you be forced to sell your home to pay off your loan - even if the loan balance grows to exceed the value of the property.
Repayment is not necessary until you sell the property, move into a retirement community or pass away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage, plus interest and other finance charges, to the lender. Any remaining equity in the home is retained by you or your heirs.
You may get a free copy of our 66 page Senior Planning Guide. This topic can be very important while planning for your retirement years. The information is free without any obligation whatsoever. This guide is written by prominent
Additional Resources:
- Reverse Mortgage Calculator - See how much you could qualify for
- Massachusetts Office of Consumer Affairs & Business Regulation - Information on Reverse Mortgages
- AARP - Reverse Mortgage information
- Alternatives to Reverse Mortgages - AARP QuickLink site to explore Government programs that you might qualify for. Complete a 15 minute on-line survey to see what is available in your area
- Federal Trade Commission - Reverse Mortgage Facts
- Housing and Urban Development - Top 10 things to know about a Reverse Mortgage
- National Care Planning Council - National Directory of Senior Resources
- National Reverse Mortgage Loan Association - Industry website with lots of information about Reverse Mortgages
- Property Tax Deferral Programs - Find out more about property tax deferral programs that may be available in your state
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