Reverse Mortgages:  The Basics

Reverse mortgages (sometimes called "home equity conversion loans" or HECM) gives senior homeowners the ability to benefit from their home equity without having to sell their home. The lender pays out funds based on the equity you've built-up in your home; you can receive a lump sum, a payment every month, a line of credit, or a combination of any of these payment methods. Paying back your loan isn't required until the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. At the time your house has been sold or is no longer used as your main residence, you (or your estate) are required to pay back the lending institution for the cash you obtained from the reverse mortgage plus interest and other finance charges.  Your lending institution can't take away your house if you live past the loan term nor can you be required to sell your residence to repay the loan even if the loan balance grows to exceed current property value.

Are you Eligible?

The requirements of a reverse mortgage typically are being 62 or older, maintaining your property as your main living place, and holding a low remaining mortgage balance or having paid it off.  Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but have a need to add to their limited income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates.   Contact us at 816-525-8000 if you want to explore the benefits of reverse mortgages.

Executive Lending Group can walk you through the pitfalls of getting a reverse mortgage. Call us at 816-525-8000.