What is a Reverse Mortgage?
Think of a traditional mortgage in which you borrow money and make monthly payments. With a reverse mortgage it’s the opposite. You borrow money, but instead of making monthly payments, you receive monthly payments or a lump sum of money. If you are 62 years or older, you can tap into the locked up equity in your home without selling your home or making monthly payments as long as you live in your home.
Reverse Mortgage Benefits
- No Monthly Mortgage Payment
- No Income Qualification
- No Credit Score Qualification
- You Own your Home – the lender does not take control of the title
- You Continue To Live In Your Home As Long As You Want
- The Money You Receive Is Tax-Free
Growing popularity of the Reverse Mortgage
Until a few years ago, reverse mortgages were virtually an unknown financial tool for many older Americans. Now, over 175,000 older Americans, 62 years or older have benefited from a reverse mortgage.
At a time when it is difficult for older Americans to keep up with the financial pressures of the new economy, the message of a reverse mortgage being a logical and sometimes necessary part of financial planning is finally getting through.
Insured by the Federal Housing Administration (FHA), a reverse mortgage in many ways is a reward for the hard work you put into building the equity in your home. You can access the equity in your home and use the money tax-free without making monthly mortgage payments.
How can you use the money?
- Pay off credit card debt
- Pay off an existing mortgage
- Pay for Long-term health care or Housekeeping
- Pay for medical bills or prescription drugs
- Pay for home repairs and improvements
- Pay for travel and vacation
- Use money for whatever you need or want
No Credit Score Qualification
If you own a home and you and your spouse (if you’re married) are 62 years or older, you can qualify. There is no income or credit score qualification. The amount you receive is based primarily on your age, the value of your home and current interest rates.
- The home must be your primary residence
- Property tax and hazard insurance must be kept current
Payment options
If you are committed to staying in your home, there are several ways in which you can receive money from a reverse mortgage:
- A lump sum of cash
- Regular monthly payments for as long as you live in the home
- Regular monthly payments for a fixed period of time
- A line of credit to draw on as you need it
- Or any combination of the above
Taking the Next Step
A reverse mortgage can afford you the opportunity to live more independently and enjoy retirement, let’s talk it over. Call us and we’ll be happy to have our Reverse Mortgage Advisor visit with you. You’ll get enough facts to know if a reverse mortgage is for you.
Who is MoneyIdeas for Mature Adults?
MoneyIdeas for Mature Adults is a HUD approved mortgage brokerage firm headquartered in San Jose, California. The executive team has over 47 years of combined experience in real estate, real estate mortgages and estate and financial planning. MoneyIdeas for Mature Adults is in the business of creating cash and eliminating existing debt, including existing mortgages for older Americans.
As a socially conscious company, MoneyIdeas understands the issues most important to older Americans. Not only is the financial part of the transaction important but also the dignity and respect given to older Americans when working with companies such as ours.
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