Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without having to sell their home. The lender pays out money based on the equity you've accrued in your home; you get a lump sum, a payment every month or a line of credit. Repayment isn't necessary until when the borrower sells the home, moves (such as to a retirement community) or dies. You or your estate representative is required to repay the reverse mortgage loan, interest accrued, and other finance fees when your home is sold, or you can no longer use it as your primary residence.
Who is Eligible?
Typically, reverse mortgages are available for homeowners at least sixty-two years old, have a small or zero balance in a mortgage and use the house as your principal residence.
Many homeowners who are on a limited income and have a need for additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The residence can never be at risk of being taken away from you by the lender or sold without your consent if you live past your loan term - even if the current property value dips under the loan balance. Contact us at (877) 428-6847 if you'd like to explore the benefits of reverse mortgages.
1st Mortgages can walk you through the pitfalls of getting a reverse mortgage. Give us a call at (877) 428-6847.
Regulated by: the Division of Real Estate (CO) ∙ the State of Nebraska Department of Banking and Finance (NE) ∙ the Arizona Department of Financial Institutions (AZ) AZ# 0923361 ∙ the Office of the State Bank Commissioner (KS) Kansas Licensed Mortgage Company License No. MC0025226 ∙ the Wyoming Division of Banking (WY) WY# 2277. In Texas we are licensed and operate as 1st FFS, Inc. TX License #1230161. We do business in accordance with the Fair Housing Law and Equal Credit Opportunity Act. – NMLS# 109995