- Reverse mortgages have become increasingly popular over the last decade.
- Reverse mortgages enable qualified seniors 62 years and older to receive money from the equity in their home and to eliminate their monthly mortgage payment forever.
- Money received from a Reverse Mortgage can be used for additional cash flow to pay off bills, to cover health care expenses, or simply to travel and enjoy retirement.
- There are no minimum income and credit score requirements because the homeowner does not make a monthly mortgage payment.
- The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).
- After the property is sold to satisfy the accrued mortgage, any remaining equity is inherited by the estate and not the lender.
- The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.
- Eligible individuals must be 62 year or older and have meaningful equity in their homes.
- All existing liens, if any must be able to be satisfied with the reverse mortgage.
- If there is a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing.
- No credit check and no income or asset check.
- The amount that can be borrowed is determined by an FHA formula that considers age, the current interest rate, and the appraised value of the home.
- The more valuable the home (up to a certain point), the higher the loan amount will be, depending on lending limits.
- Reverse mortgages have helped over 400,000 seniors supplement their retirement income and enjoy their "golden years."
- If you would like more cash and have equity in your home, a Reverse Mortgage may be a great way to put more money in your pocket.
- Talk to your American Home Free Mortgage loan expert to find out if a Reverse Mortgage makes sense for you.
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