Reverse Mortgage
A reverse mortgage allows seniors (62+) to convert home equity into cash, providing tax-free income for living expenses, healthcare, or home repairs, while eliminating monthly mortgage payments and letting them “age in place” without selling. Key benefits include flexible cash flow (lump sum, credit line, monthly payments), no repayment until the home is sold or the owner moves, and non-recourse protection meaning the debt won’t exceed the home’s value, protecting heirs.
Key Benefits:
- Eliminates Mortgage Payments: Frees up cash flow by removing the need for monthly principal & interest payments on the home.
- Tax-Free Cash: Funds received are considered loan proceeds, not income, so they aren’t taxed.
- Age in Place: Enables seniors to stay in their homes longer, accessing equity to improve living standards or fund care.
- Flexible Payouts: Get money as a lump sum, a line of credit, or fixed monthly payments.
- No Repayment Until Sale/Move: The loan isn’t due until the last borrower moves out, sells the home, or passes away.
- Non-Recourse Feature: Protects heirs; the loan balance can never exceed the home’s value, so the estate isn’t liable for more than the home is worth.
- Use for Anything: Funds can cover daily living, medical bills, home improvements, or even buying a new home (with no mortgage).
Who It’s Good For:
- Seniors struggling with retirement income.
- Those wanting to stay in their homes but need cash.
- People with significant home equity but low cash flow.
Important Considerations:
Impact on Heirs: Reduces the equity left in the home for your heirs. e buyer or expanding your property portfolio, we’re here to support you with financing that fits your needs.
Costs & Fees: Origination fees, insurance, and closing costs can be substantial.
Home Maintenance: You must keep up with property taxes, insurance, and maintenance, or risk foreclosure.