Introduction to Reverse Mortgages

Many homeowners have found that a Reverse Mortgage is a great way for them to take advantage of the tax-free equity they have established in their homes.

A Reverse Mortgage is different than a traditional mortgage. The main difference is that with a traditional mortgage you make monthly mortgage payments.  However, with a Reverse Mortgage the lender pays you money through monthly installments or a one-time, lump sum payment.  The money that you receive is dependant on your age and the value of your home. 

There are several advantages to a Reverse Mortgage:

  • You may choose to receive the funds on a monthly basis, a lump sum, a line of credit or a combination of these options.
  • You, as the homeowner, may stay in your home without making monthly mortgage payments because a Reverse Mortgage eliminates your existing mortgage payments.
  • Your heirs inherit any remaining equity after paying off the Reverse Mortgage.
  • Your equity proceeds are tax-free however, we recommend you consult with your financial advisor for specific details.
  • You can never owe more than the value of your home... no matter what!

If you’re age 62 or older and own your home you might be eligible for a reverse mortgage.  Contact us to find out more about reverse mortgages and ways to make it work for you, or apply now and start the process of tapping the equity in your home.