Reverse Mortgages

Providing Tax Free Income to Seniors

Reverse Mortgages Explained

Reverse Mortgage Loans were created by the U.S. Government as a safe and highly regulated insured plan to assist seniors over the age of 62 in maintaining their independence and financial security.  Because reverse mortgage loans are highly regulated and insured by the U.S. Government, reverse mortgages are a safe option as a source of income. A reverse mortgage can also guarantee you will not be leaving a debt for your heirs to contend with.

Today, as a society, we are all living longer and our greatest worry is that we will outlive our means to care for ourselves.  A Reverse mortgage offers an ideal way to avoid sacrificing the quality of your life while maintaining the desired independence of living in your home. Seniors who own their own home are now able to use their home as a Long Term Financial Vehicle.  This type of loan was created to assist seniors with the tax free income needed to provide a better life style for them, without the worry of having to repay the loan. 

Whether you are looking for additional income to pay off bills, or to help you enjoy your retirement, a reverse mortgage might be the answer for you.  The income received through your reverse mortgage can assist you with long-term health care insurance, medical expenses, home repairs or improvements, property taxes, supplementing retirement income, in-home care, or investing in CD’s and annuities. 

Frequently Asked Questions about Reverse Mortgages

What is a Reverse Mortgage?
It is a loan which allows homeowners aged 62 and older to get tax-free income based on the equity in their house.  This type of loan enables homeowners to borrow against the equity in their home, without having to sell their home, give up title, or take on a new monthly payment.  It is called a reverse mortgage because the bank pays YOU.

What are the benefits of a reverse mortgage?

• Homeowners continue to live in their own home.
• Repay the loan at any time, with no penalty.
• Heirs have no liability for payment of the loan. The liability is only on the property.
• Tax free cash advances, homeowner can choose the payment option.
• Obtain immediate cash advances in addition to monthly income.
• Adjust payment options at any time to meet your current circumstances.

Who is eligible?
You must be 62 years or older and occupy the property as your primary residence.

Am I qualified for a reverse mortgage if I currently have an existing loan on my home?
Yes, but the existing loan must be paid off at the closing of your reverse mortgage.

My property is held in a living trust. Do I qualify?
As long as you are the primary trustee and are qualified by age.

How much of my home's equity can I use ?
Available equity amounts vary based on the value of the property and the age of the youngest applicant.

Does the IRS consider the monthly advances for a reverse mortgage income?
No, the cash advances are actually loan distributions and are not considered income.

My spouse is in a nursing home.  Can we participate?
Yes, the requirement is only that one owner occupies the property as a principal residence.

Are there restrictions on how I can use the money?
No.  The loan proceeds can be used for any purpose.  It is your money to do with as you wish.

Can the lender take my home away if I outlive the loan?
No and the note is not due either, until death or the title is passed.  You do not need to repay the loan as long as you or one of the borrower’s continue to live in the house and keep the taxes and insurance current.  You can never owe more than your home’s value.

Ask yourself these questions?

• How do you think a Reverse Mortgage will help you?
• How is your home's value helping you now ?
• How can we help?

Call The Mortgage Outlet today at 631-589-3600