What is a reverse mortgage?
A reverse mortgage is a loan that grants approximately
40-65% of the appraised value of your home. You
do not make payments on the loan during your lifetime.
The money received from the loan, in addition to a low interest
rate amount, is paid when the last surviving spouse of the estate
has passed on or has permanently left the home. The monetary funds
to make the payment usually become available at the sale of the
estate.
In most cases, those who obtain a reverse mortgage receive a
substantial amount of cash within 30-60 days.
You retain 100% ownership and the future appreciation of your
home.
If you already have a mortgage on your home,
you can still acquire a reverse mortgage. You would have to pay-off
the balance of your existing mortgage with the funds that you
receive from your reverse mortgage. This would eliminate
your regular monthly mortgage payment , thereby increasing your
monthly income.
You can use the funds from your reverse mortgage for anything:
Daily Living Expenses
Home Repairs and Improvements
Medical and Prescription Bills
Existing Debt
Education
Travel
Long Term Health Care
Family Inheritance Gifts (so that you can see
the results now)
Reverse mortgage proceeds are available as a lump sum,
fixed monthly payments, or a combination of both, as
long as you reside in your home.
The appraised value of your home, the current interest rate,
and your age are the factors that determine the amount you would
receive.
