In a “regular” mortgage, you make monthly payments to the lender. But in a “reverse” mortgage, you receive money from the lender and generally don’t have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer live there as your principal residence. Reverse mortgages can help homeowners who are house-rich but cash-poor stay in their homes and still meet their financial obligations.

 

To qualify for most reverse mortgages, you must be at least 62 and live in your home. The proceeds of a reverse mortgage (without other features, like an annuity) are generally tax-free, and many reverse mortgages have no income restrictions.

 

Can the lender take my home away if I outlive the loan?

 

The rules say No - as follows! You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current.

 

Will I still have an estate that I can leave to my heirs?

 

When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. 

 

How much money can I get from my home?

 

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

 

Are there rules for how I use the money I get?

 

Nope!  Some will use the money for Estate Planning and Wealth Management wherein they provide additional income to supplement their day to day or month to month living expenses.  But additionally, some will also use the money for Home Repair, paying off debt, or to make Luxury Purchases and travel.  It is your money, use it as you see fit.

 

Some additional important thoughts are;

 

Reverse Mortgages generally will not affect regular Social Security payments or Medicare beneits.

 

Reverse Mortgage proceeds can be payable as monthly income, lump sum, line of credit, or a combination of these options.

 

And for all your other questions that you must have regarding reverse mortgages;

 

Call us to see if this loan product is right for you.

 

Rick or Roxanne Blum

775-513-9112 or 702-498-6134

Or Email: roxanne@fundingsolutions-nv.com