Reverse Mortgage Loans

Reverse Mortagage LoansWhat Is A Reverse Mortgage?

A reverse mortgage is a special type of loan made to older homeowners to enable them to convert the equity in their home to cash so homeowners can finance living expenses, home improvements, in home health care, or other needs.

With a reverse mortgage, the payment stream is “reversed.” That is, payments are made by the lender to the borrower, rather than monthly repayments by the borrower to the lender, which occurs with a regular home purchase mortgage.

A reverse mortgage is a sophisticated financial planning tool that enables seniors to stay in their home or “age in place” and maintain or improve their standard of living without taking on a monthly mortgage payment. The process of obtaining a reverse mortgage involves a number of different steps.

In general, reverse mortgages are limited to borrowers 62 years or older who own their home free and clear of debt or nearly so, and the home is free of tax liens.
Borrowers usually have a choice of receiving the proceeds from a reverse mortgage in the form of a lump sum payment, fixed monthly payments for life, or a line of credit.

Some reverse mortgage products also involve the purchase of an annuity that can assure continued monthly income to the senior homeowner even after they sell the home.

The size of reverse mortgage that a senior homeowner can receive depends on the type of reverse mortgage, the borrower’s age and current interest rates, and the home’s property value. The older the applicant is, the larger the monthly payments or line of credit. This is because of the use of projected life expectancies in determining the size of reverse mortgages.

Seniors do not have to meet income or credit requirements to qualify for a reverse mortgage.

Reverse Mortgage features:

• No monthly payment. Instead, you are paid each month.

• No income or credit qualifying needed.

• You maintain title and ownership of your home.

• Proceeds from a Reverse mortgage are not subject to personal income taxation.

• It is not a government grant, but a loan that is repaid in the future.

• Can be used only for the borrower’s primary or principle residence.

Our reverse mortgage specialists can help you tap into the equity that has accumulated in your home so you can use the funds. The proceeds can be used for any purpose and are available in a variety of payment methods such as cash payments, monthly payments, or an Equity Line.

When you choose our mortgage company, you can feel secure knowing you are workingwith a trusted leader. Contact us at 0412 179 306

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