WHAT is a Reverse Mortgage?
Reverse Mortgage is a loan secured against the equity of a home. Homeowners are required to keep the home in good condition, up-to-date with property taxes and home insurance.
WHO is a Reverse Mortgage for?
Homeowners 55 years old or older, who want to access the equity in their home but don’t want to sell their home. Homeowners must own the home and it must be their primary residence (they must live in it at least 6 months each year).
HOW much money do homeowners gain access to?
Up to 55% of the home value. Funds are tax-free and available as a lump sum and/or regular payments.
There are no renewal fees as the loan is not due until the last homeowner leaves the home (when they move, sell or pass away).
HOW can homeowners use the funds?
- Improve day-to-day standard of living
- Handle unexpected expenses
- Pay off debt
- Help out family members
- Make a special trip or purchase
No monthly payments are required.
Homeowners have the option to make partial and interest payments.
ANY risk involved?
Homeowners maintain their ownership. There is no risk, provided homeowners keep their home in good condition, and stay up-to-date with property taxes and home insurance. Reverse Mortgage Lenders have a no negative equity guarantee – meaning homeowners never owe more than the fair market value of the property at the time the last homeowner moves, sells or passes away.