You hear so much on T.V. and print advertisements about reverse mortgages, however few people really know how they work and how it will benefit them.  

Many Seniors want to stay in their homes and age in place.  However due to rising health care, cost of living and other variables, seniors find it hard to pay their bills and get by.  So, a viable answer is a Reverse Mortgage.  

This is an important financial tool available for senior homeowners so they can supplement their income in the following ways.

- lump sum cash payment

-  line of credit

- receive monthly checks

 -or any combination of the three.

 There are no monthly payment requirements with a reverse mortgage.  Seniors can repay the loan when they sell or leave their home. 

With a reverse mortgage the Homeowner still retains title to their home. The deed does not change.

When the Homeowner passes away, the reverse mortgage becomes due and must be repaid. The homeowner's heirs are typically faced with the choice to buy, sell, or convey title to the lender in order to pay off the reverse mortgage.

After the reverse mortgage is paid in full, any remaining equity is passed on to the homeowner's heirs. If, when the homeowner passes away, the amount owed on the reverse mortgage is more than what the home is worth, their heirs are not responsible to make up the shortfall between the loan balance and the value of the home.

Other than that, they are similar to a forward mortgage, however when you receive your monthly mortgage statement, you’re not required to make a payment. The homeowner does have to keep current with the real estate taxes and the homeowner’s insurance policy and basic maintenance of the property.

The amount you can borrow depends on the homeowner’s age, mortgage balance, and the value of the home.  Depending on the state you live in, there are the government HECM reverse mortgages as well as proprietary Jumbo reverse mortgages. Depending on the program, you need to be 55 years or older to qualify. 

 Unlike forward mortgages, you may be able to qualify on fixed income and you may still qualify if you have bad credit. the variables include your age, value of your home and any outstanding liens on your property. 

Every homeowner’s situation is different.  We first speak to you and/or your family members to help us understand your goals. We will put together a program based on your financial condition and needs.  We meet personally with every senior homeowner and explain the program, how it works and guide you thru the process from application to closing.

You may qualify if your house is in a trust. This will be subject to a review of your trust documents and meeting all other borrowing requirements

No- full or partial prepayment is allowed anytime.