A reverse mortgage is a home loan that allows you to convert some of the existing equity in your home into cash while you retain ownership of the property. Equity is the current cash value of a homes minus the current loan balance you may owe.
A reverse mortgage works much like a traditional mortgage, except in reverse. Instead of the homeowner paying the lender each month, the lender pays the homeowner. As long as the homeowner continues to live in the home, no repayment of principal, interest, or servicing fees are required. The funds received from a reverse mortgage may be used for anything, including housing expenses, taxes, insurance, fuel or maintenance costs.
To qualify for a reverse mortgage, you must own your home and be age 62 or older. The amount of money you are eligible to borrow depends on your age, the amount of equity in your home.
Because the borrower retains ownership of the home with a reverse mortgage, the borrower also continues to be responsible for taxes, repairs and maintenance.
Depending on the plan selected, a reverse mortgage is due with interest either when the homeowner permanently moves, sells the home, dies, or the end of a pre-selected loan term is reached. If the homeowner dies, the lender does not take ownership of the home. Instead, the heirs must pay off the loan.
GET THE FUNDS YOU NEED WITH A REVERSE MORTGAGE
Regional Home Mortgage is one of the most experienced reverse mortgage brokers in the area. Working with a mortgage broker means having a local expert by your side for one of life's biggest decsions. Because we are independent, the results are typically a cheaper, faster and easier process for you.
For over 2 decades we have been helping eligible customers 62 years or older convert a portion of their home equity into usable funds.