ReverseMortgage网站标志

WHAT IS A REVERSE MORTGAGE?

A reverse mortgage is a loan secured by your home.

It must be your primary residence (that means that you, as the borrower, must live in the home for as long as you have the loan).

This type of loan allows borrowers to access a portion of their equity — tax-free — without having to make monthly mortgage payments.

No payment is required until the last surviving homeowner moves, dies, or sells the home.

The borrower maintains the title of the home and maintains responsibility for property taxes and homeowner’s insurance payments.

The amount borrowers receive is determined by the HUD calculations based on the age of the borrowers (most specifically the age of the youngest borrowing or non-borrowing spouse), the value of the home or the HUD lending limit, whichever is less and the interest rates in effect at the time.

Borrowers never have to make a monthly payment on reverse mortgage loans.

There is never a prepayment penalty so they can make any payment they wish, including repaying the loan at any time, without penalty.

HISTORY

Since 1989, the Home Equity Conversion Mortgage (HECM) has been insured by the federal government through the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD).

Since its inception, the reverse mortgage program has helped thousands of homeowners just like you to safely access a portion of the equity in their homes to better enjoy their retirement years.

IS A REVERSE MORTGAGE RIGHT FOR YOU?

Reverse Mortgage loans are not right for everyone. It may surprise you to hear a lender say this, but it is true.

If you are looking for a short-term loan you may be better suited for a different type of financing.

A reverse mortgage loan can sometimes require closing costs and upfront mortgage insurance premiums which would make it impractical as a short-term solution in some cases.

However, for those who wish to remain in their homes and need extra cash flow to do so, the Home Equity Conversion Mortgage may be exactly what you are looking for.

Educate yourself or family on the safeguards with our pros and cons guide.

We explain what it is, how a reverse mortgage works, and provide answers to many frequently asked questions and common misconceptions.