What is a reverse mortgages
- A Reverse Mortgage is a government insured program that enables senior homeowners to convert a percentage of the home's equity into cash, while retaining home ownership.
- Homeowners who are at least 62 years of age.
- Properties include: Single Family Homes, Condos, Town Homes 1 to 4 unit dwellings and Manufactured Homes with approved foundation.
- The home doesn't need to be owned free and clear, but must have enough equity so the proceeds from the reverse mortgage can pay off the outstanding balance.
- A homeowner can choose a monthly annuity payment, or opt for a lump sum payment, or a line of credit account from which they can draw money when they need it, or a combination of the three.
- After the Reverse Mortgage is in place the property always remains in the owners name. Accordingly, they
are still responsible for all applicable taxes, insurance, maintenance, and repair.
- The title of the property always remains in the homeowner's name, never changing ownership.
- The funds from a Reverse Mortgage may be used in any manner the senior wishes with no restrictions.
- Income received from a Reverse Mortgage are tax-free, doesn't affect Social Security, Medicare or Medicaid benefits.
- All Reverse Mortgage fees and interest are deferred until both seniors move out permanently, sell the home or pass away. Please call Rex Duffin and he can go over the fees with you.
- The amount is based on a HUD formula that factors the age of the youngest borrower, interest rate and appraised value.
- Cash lump sum all at once. The funds may be used in any manner you wish, with no restrictions.