iStock 000009066670Large[1]

Reverse mortgages are designed specifically for senior homeowners, 62 or older. 

 

 

 

 

 

A typical mortgage requires the homeowner to pay the lender monthly, with a reverse mortgages the opposite is true.  The homeowner with equity may receive money monthly, upfront lump sum, a line of equity, or a combination of monthly payments and a line of equity. 

Reverse advances are not taxable. Allowing you to retain the title to your home, and you don’t have to make monthly mortgage payments*.   

Advantages to reverse mortgages:
  • A reverse loan is based on age and the value of your home.
  • Supplemental retirement income.
  • Lump sum disbursement upfront.
  • Paying off of a current mortgage with no monthly mortgage payments required from the homeowner.*
  • You may use your proceeds to pay off other debt.
  • Tax advantages. (Talk with your tax advisor for details)
  • Allows the homeowner to remain in their home.

     

There are other factors to consider:
  • *You retain title to your home, but you are responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses.
  • Although some reverse mortgages have fixed rates, most have variable rates that are tied to a financial index: they are likely to change with market conditions.
  • Unlike a typical mortgage where the blance reduces every monthy when a payment is received, a reverse mortgage can have a credit line option, wher the unused portion grows montly to allow for a larger available line each year.
  • FHA insured reverse mortgages have a "non-recourse" clause, which prevents you or your estate from owing more than the value of your home when the loan is repaid.
  • Typical cost are an origination fee, mortgage insurance premium (for federally-insured HECMs), and other closing costs for a reverse mortgage. In most cases a borrower may finance them into the mortgage.
  • Interest on a reverse mortgage is not deductible on income tax returns until the loan is paid off in part or whole.
  • The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence. 

To see if a Reverse Mortgage is right for you, contact us today. 

 

Additonal Resource - Reverse Mortgages: Get the Facts Before Cashing in on Your Home’s Equity

 

 
©2014 Corridor Mortgage Group. All rights reserved.

Corridor Mortgage Group, Inc., NMLS #111979, an Equal Housing Opportunity Lender. (866) 313-9600

Equal Housing
Website design and development by Americaneagle.com
 
Maryland Home Mortgage | Maryland Mortgage Lenders | Mortgages MD | Mortgage Lenders in Maryland | Mortgage Lenders in MD
VA Mortgage Lenders | VA Home Mortgage Loans | VA Home Loan Lender | VA Mortgage Loans | Virginia Mortgage Lenders