How can a reverse mortgage help me?

Typically, this type of financing can be used to eliminate monthly housing expenses or to supplement a fixed income. A reverse mortgage can allow you to put your home’s hard earned equity to work for you in order to make your life more comfortable and enjoyable for you and your loved ones.

What can I do with the money from my reverse mortgage?

The money you receive from a reverse mortgage has no restrictions or limitations as to how it can be used. Many people use their proceeds to remodel their existing home, pay off debt, afford their health care, enjoy travel and make major purchases.

Can a lender take away my home if I outlive the life of the loan?

No! Just like a traditional mortgage, the deed is in your name. As long as at least one of the borrowers lives in the property, keeps the taxes and insurance current as well as the home in good repair, you do not need to repay a reverse mortgage. When the need arises, your heirs will have 6 months to decide how to settle your estate according to your final wishes. Remember, the amount of money you will owe cannot exceed the market value of your home. Your heirs will not have to pay any money out of pocket to pay off the balance of your home.

Will I still have an estate I can give to my heirs?

Yes; your house remains in your name and therefore will go to your heirs. Your family will have up to 6 months to make a decision on what to do with your home. When your home is sold either you or your estate will pay off your mortgage note to the lender. The total due will include any monies paid out to the homeowner in addition to any interest that has accrued. Your loved ones will never have to write a check to cover your reverse mortgage debt.

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