Reverse Mortgage Information

Reverse Mortgages offer financial flexibility to homeowners 62 years of age and older with significant equity in their homes. Qualified borrowers can receive a monetary lump sum, monthly payments, establish a line of credit, or utilize a combination of these options to accomplish the following:

• Supplement Income and Eliminate Debt
• Cover Medical Expenses
• Purchase a Car or Take a Vacation Trip
• Pay for Home Repairs or Improvements
• Establish Trusts or Financially Support Family Members

Despite the level of value reverse mortgages offer to eligible-age homeowners, there are detractors who simply aren’t fully educated on this innovative product. Two common misconceptions about reverse mortgages are as follows:

"When the borrower dies, the holderof the reverse mortgage immediately obtains possession of the house."

NOT TRUE. Actually, the lender who holds the reverse mortgage allows a sufficient period of time for the balance owed on the home to be paid in full, either through a refinance loan by the heirs of the property or through sale of the home. This curing period is anywhere from 3-6 months depending on the lender.

"If a husband and wife are both on a reverse mortgage account and one of them dies, the other must pay off the loan immediately or otherwise vacate the home and allow the lender possession.”

NOT TRUE. If the surviving spouse is on the note along with the deceased, the loan proceeds with no changes and the surviving spouse continues to enjoy the benefits of the reverse mortgage.