The Basics of a Reverse Mortgage
A Reverse Mortgage or Home Equity Conversion Mortgage (HECM) is a FHA Loan insured by HUD that allows homeowners, who are 62 and older to convert part of their home equity into tax-free income, payoff existing mortgage debt and eliminate their house payment, receive a lump sum to use how they see fit or any combination, without having to sell their home, give up title to it, all without making monthly mortgage payments.
A Reverse Mortgage is like any other loan; you retain ownership and control of your home. The only difference is, that this is a “loan in reverse”…you don’t make monthly loan payments, instead, the interest is deferred until the loan is paid off, either by you selling your home, or upon the last borrower’s death.
Your are still responsible for occupying the home as your primary residence, keeping up the property maintenance and paying your property taxes, homeowners insurance and any applicable homeowners dues.
Seniority has its privileges…Let Becky Smith 800 935 3639 use her expertise to help you determine if a Reverse Mortgage is right for you.