A reverse mortgage allows homeowners who are over the age of 62 to tap into the equity they’ve built up in their home — through a lump sum, a fixed monthly payment, or a line of credit.
The biggest difference between the two is that a traditional mortgage requires a monthly payment and a reverse mortgage does not. However, there are many differences between the two loan options. Depending on your unique situation, one will be a better option than the other.
No! With a reverse mortgage, you maintain ownership of your home — as long as you occupy it as your primary residence, pay your property taxes and insurance, and maintain the property according to the Federal Housing Administration (FHA) requirements.
A reverse mortgage is no different than a conventional mortgage when it comes to repayment after the last borrower passes away. Your child(ren) or heirs will have the same options for managing your property as if you had a traditional home loan.
Did You Know?
Yes! If you are aged 62+ and would like to purchase a home, but would also like to retain as much of your cash savings as possible (for future medical expenses, travel, unexpected bills, etc.), you might benefit from a reverse mortgage for purchase.
A reverse mortgage with a line of credit is one option for retirees that can help them manage their assets most effectively. The money withdrawn from a reverse mortgage line of credit is nontaxable, so a retiree will need to withdraw less each month than they would from a taxable retirement account.
A reverse mortgage with a line of credit is one option for retirees that can help them manage their assets most effectively. The money withdrawn from a reverse mortgage line of credit is nontaxable, so a retiree will need to withdraw less each month than they would from a taxable retirement account.
Property and borrower eligibility requirements apply. Loan becomes due and payable when the last remaining borrower (or eligible spouse) sells the property, permanently leaves the home or passes away. Taxes, insurance, and repairs are the responsibility of the borrower and must be maintained to avoid early repayment of the entire loan amount. Consult a tax advisor for questions about tax and government benefit implications.
Get in touch with a trusted Reverse Mortgage Specialist at Assured Capital Funding. It’s our goal to help senior citizens create a more financially stable and secure retirement.
Get in touch with a trusted Reverse Mortgage Specialist at Assured Capital Funding. It’s our goal to help senior citizens create a more financially stable and secure retirement.
