Is a Reverse Mortgage for You?

Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without selling their home. The lending institution gives you money determined by your home equity amount; you get a lump sum, a payment every month or a line of credit. Paying back your loan isn't required until after the homeowner sells the home, moves (such as to a care facility) or dies. You or representative of your estate has to repay the reverse mortgage loan, interest accrued, and other finance fees when your property is sold, or you no longer live in it.

Who is Able to Participate?

The conditions of a reverse mortgage generally include being 62 or older, using the property as your main residence, and holding a small remaining mortgage balance or having paid it off.

Homeowners who are on a limited income and have a need for additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution will not take away your residence if you outlive your loan nor may you be made to sell your residence to pay off the loan even if the balance grows to exceed current property value. Call us at (303) 300-8601 to explore your reverse mortgage options.