Reverse Mortgages

Last updated: February 4, 2016

What Is a Reverse Mortgage

A product to allow conversion of the equity in your home into cash without having to sell the home or pay additional bills. 

  • Homeowner must:

    • Be at least 62

    • Occupy the property as principal residence.

  • Common Purposes

    • Supplement retirement income

    • Payoff current mortgage

    • Pay for healthcare expenses

  • Repayment is required with

    • Death

    • Sale of home

    • or when the home is no longer the principal address

    • Before applying you must meet with a counselor from an independent government-approved housing counseling agency.

    Other Features to Consider

    • Lenders generally charge an origination fee and closing costs
    • The amount owed grows over time
      • Interest is charged on the outstanding balance and added to the amount borrowed
    • Interest rate may be fixed or adjustable
    • Homeowner retains the title to the home
    • Homeowner remains responsible for property taxes, insurance, utilities, maintenance and other expenses
      • Loan may become due and payable if these obligations are not paid

    For more information click on of the following