Just as its name implies, a reverse mortgage is a mortgage set in reverse: rather than paying your mortgage every month, you receive payments from a lender instead. A reverse mortgage gives you the opportunity to convert the equity you’ve accumulated in your home into tax-free cash. You can utilize these funds to make home improvements, supplement your retirement income, pay off bills and much more.

Who can qualify?
You must be a homeowner and at least 62 years old. Approved property types include single-family homes, manufactured homes built after June 1976, specific types of condominiums and townhouses.

What’s the maximum amount I can borrow?
The amount you are eligible to borrow depends on multiple factors such as age, the appraised value of your home and the latest interest rates. Per the general rule – as age and home values go up, the amount you can borrow increases as well.

How do I receive payments?
You can receive payments in one of three ways from a reverse mortgage:

• One lump sum
• Monthly payments for a pre-determined duration (up to life)
• Line of credit

Borrowers tend to prefer the line of credit option since it offers the most flexibility – you can turn to your credit line whenever needs arise.

When do I need to pay it back?
Repayment is not required while the reverse mortgage is in use. You only have to pay back a reverse mortgage when:

• You (or both spouses for married couples) pass away
• You sell your home
• You adopt another home as a primary residence

Want to learn more about reverse mortgages? To schedule a FREE consultation, call our office at (708) 375-5333.