Key Benefits of a Reverse Mortgage

• Continue to live in your own home.  You continue to hold title.

• Do not have to sell your home to convert the equity into cash.

• Funds received from a reverse mortgage are tax free.

• Enjoy the flexibility of determining how you wish to receive your cash disbursements:

• fixed monthly payments,

• a line of credit,

• a lump sum cash advance, or a combination of the plans.

• Adjust your payment option to meet your current circumstances.

• Repay the loan at any time without penalty.

• Have peace of mind knowing that you and your heirs have no personal liability for the repayment of the loan since it is secured solely by your home.

• Relax knowing that you owe nothing until after you no longer occupy the home as your principal residence.  No monthly payments.

• Know that your reverse mortgage advances will not affect your Social Security or Medicare benefits.

• Structure monthly (term) payments to coincide with pay out of a 401(k) or other retirement fund or investment for highest possible income.

• Your credit history is not a factor in determining eligibility for a reverse mortgage.  Neither is income, employment, asset, or health requirements.  Could have just been discharged from bankruptcy or currently be in foreclosure.

• The "Four Nevers" of reverse mortgages:

  • The borrower never makes a payment,

  • never gives up title,

  • never is forced to move,

  • and never will owe more than the home's value.

• Funds left in the line of credit continue to increase over time at a rate half a percentage point greater than the prevailing interest rate on the loan.

• Before you can be obligated to pay any fees as part of your reverse mortgage application, you must complete an educational counseling session with an approved counselor.

• You will never, under any circumstances resulting from the reverse mortgage, be forced to leave your home.  You can remain in your home for as long as you like, provided you make your real estate property tax and insurance payments.

• Limits on the interest rate and origination fee.

• Federally mandated consumer disclosures.

• When the reverse mortgage must be repaid, you or your heirs can either pay the balance due and keep the home in the family, or sell the home and use the proceeds to pay off the reverse mortgage.