How it Works

A Reverse Mortgage is an FHA-insured Federal Government program exclusively for senior homeowners. It allows someone who is 62 years of age or older to get some of the equity out of their home – but the good news is of course – you do not make a SINGLE payment on this loan for as long as you or your spouse lives in the home – no matter how long that is. If you live to be 100 years old you still do not pay so much as one penny payment on this loan for as long as you live in the home as your primary residence (183+ days per year).

The reverse mortgage lender DOES NOT get your home in any way, and they do not get your equity in your home – not now and not when you vacate the home. You and your heirs will always retain the ownership of your home.

Doesn’t that sound good? It sounds a little too good to be true doesn’t it? Well, it’s actually 100% true and there are thousands of seniors taking advantage of this program every month.

There are no income qualifications for this loan and no credit qualifications for this loan.

3 things determine how much money you get.

  • First of all – your age – the older you are the more money you get.
  • The current interest rate.
  • And the value of your home.

Some lenders play funny fees on you and lower some fees while raising others, so it’s important that you allow us to connect you with a reputable lender. What you/we care about is how much money you walk away with.

All parties on title must be at least 62 years of age or they will have to come off of the title in order for the eligible homeowner to get a reverse mortgage.

The FHA limit – the amount the federal government is willing to insure – for the entire country is currently at $625,500 until December 31, 2011. That is the highest it has ever been, and the federal government gives you a portion of this limit based on your age and the current interest rate. That means that today, more money than ever is available to senior homeowners through this federally-insured program.

Out of the amount the federal government will insure, they require that the lender pay off any existing liens or mortgages, which will eliminate that monthly payment for you (remember, there are no monthly payments on the reverse mortgage).

The proceeds from a Reverse Mortgage is TAX FREE MONEY. The Federal Government does not look at this as income – and it DOES NOT affect your standard social security payments!!

You can take the money available to you one of several ways or a combination of ways. You can take it all in a lump sum and do whatever you want to with it. OR, you can take it in what is called a “Life Time” GUARANTEED payment, whereby you are guaranteed to receive the same payment every month for as long as you live in the home as your primary residence — no matter how long that is – EVEN if it goes beyond the amount you originally qualified for (if you live to be 110 years old, you will continue to get the guaranteed payment every month as long as you live in your home!!)

Another option is to put the money into a Line Of Credit (LOC) which is the most popular way to take your money. The way the LOC works is you simply contact the Servicing Department of the lender servicing your loan and tell them how much money you need and they will wire that money into your existing checking account. You can request money from your LOC as many times as you want for any dollar amount you want, up to the amount available.

There are two primary benefits to the Line of Credit option. As long as the money is left in the LOC, you are not charged any interest!! Only the money you take out and put into your pocket is charged interest.

The other benefit of the LOC is that the money you leave in the LOC actually grows/increases at the same rate of interest you are being charged!! That means your available credit goes up every month that you do not withdraw the funds, so more and more money is available to you each and every month!!! If the interest rate goes up – the growth rate of your LOC will also go up. If the interest rate goes down the growth rate of your LOC will also go down – it mirrors whatever you are being charged.

One of the great things about a reverse mortgage is that you can take your money in a combination of ways. You can take part of what’s available to you as a lump sum to take a vacation, do repairs on your home, or buy your grandkids presents!! You can take another part of what’s left after that and put it away into a Line of Credit for a possible emergency, and then you can take the rest in fixed monthly installments for life or a guaranteed payment for a period of time of your choosing. There is no other loan product as flexible and as easy to qualify for than the federally-insured reverse mortgage program for seniors.

Again, there are NO income qualifications for this loan – and there are no credit qualifications. So if you decide this is something you want – it is yours – complements of the Federal Government.

Call us today toll-free at 1-800-250-8810 to speak with a reverse mortgage expert or complete the “Quick Quote” form to find out how much money is available to you today.

 

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