What is a Reverse Mortgage?

A reverse Mortgage is a special kind of mortgage loan for seniors. It is a safe and easy way to turn your home equity into cash. Unlike a home equity loan, you do not have to make monthly payments. Instead, a reverse mortgage pays you. More importantly, you do not have to repay the loan for as long as you live in your house. It's a great way to keep your home and get money from it at the same time.

How do I qualify?

It's simple. You must be at least 62 years old. You must be a homeowner, which can be a single family home, a townhouse or a condominium. Best of all, there are no income or credit requirements to satisfy.

How much money can I borrow?

The amount you can borrow is based on the value of your home and the age of the borrowers.

How can I receive my money?

You can receive your money in several ways:

• Equal monthly payments as long as you live in your home.
• Equal monthly payments for a certain period of time.
• A line of credit you can draw upon as it is needed.
• One lump sum

Must I repay the loan?

There is no repayment as long as you live in the home. In the event of your death, your heirs can choose to repay the loan and keep the home, or sell the home and repay the loan.

What types of Reverse Mortgages are there?

There are two main types. One is from the Federal Housing Authority (FHA) and the other is from Fannie Mae. They are very similar. The FHA mortgage is called a Home Equity Conversion Mortgage and the Fannie Mae is called Home Keeper. The FHA is a US Government Agency and the Fannie Mae is a private corporation chartered by the US Government.

How will this effect my taxes and social security?

Payments received from a reverse mortgage are considered to be a loan, not income. Therefore, the funds received are NOT subject to income tax and do not affect Social Security.

What About Interest Rate Charges and Fees?

Reverse mortgages charge interest at an adjustable rate. That means the interest rate you are charged can change periodically. This does not affect the amount of money you receive. You pay the interest at the time the loan is repaid. These items are included in your loan so you don't have to pay cash for them. Your only out of pocket expense is a home appraisal, which usually cost about $350.00.

Are Reverse Mortgages Safe?

Reverse mortgages are very safe. FHA and Fannie Mae guarantee the payments that are made to you. They also guarantee you will never owe more than your home is worth.

What are people saying about Reverse Mortgages?

"Thank you for the Reverse Mortgage, we were able to get things we were unable to get before. This Reverse Mortgage is a great thing for us."
Warren -- Denver

"I lost my husband in November and the Reverse Mortgage is a big help for me having a home to stay in. Thanks again!"
Anna -- Longmont

"My Reverse Mortgage has been good for me as it took the pressure off me about finances, utility cost increases, and prescription bills."
Betty -- Durango

"The Reverse Mortgage gave us more security and Jim won't have to work so much at his age of 76. And we needed some landscaping around our home. Jim said if something happened to him before I go, my income would be better when we loose his social security."
Mary -- Denver

"I now can fully retire now that I have the money from the Reverse Mortgage. It also allows me to make a better future financially and still live in my house."
Clarke-- Pueblo

How can I learn more?

At Alliance Guaranty Mortgage, we want to help you make an educated and informed decision. Because we have your best interests in mind, we ask that all of our reverse mortgage applicants attend a FREE, no obligation financial counseling session. The information you gain from this free consultation will help you to better understand your financial situation and empower you to decide if a reverse mortgage is appropriate for you at this point in your life.