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the Most of Retirement! Today, there are more homeownership options for retired individuals and couples
than ever before.
If you are at least 62 years old
and have low or no outstanding mortgage debt, Reverse Mortgage programs allow you to
borrow against the equity you've built in your home without you repaying the debt for as
long as you live there. That's the "reverse" part of this kind of mortgage loan.
Instead of making monthly payments, you can opt to receive them!
Reverse Mortgage vs. Traditional
Refinance Loans Traditional refinance loans mean that the homeowner borrows a large amount
of money and makes monthly payments. As payments are made, the loan balance gets smaller
and the equity grows. With a Reverse Mortgage, the homeowner borrows small amounts -
monthly or at other intervals through a line of credit. Over the course of time, the loan
balance gets larger, and equity gets smaller. Payment is required only once, at the
end of the loan, which in most cases is when the homeowner dies, sells or no longer uses
the home as a primary residence.
Flexible Access to Extra Income
Reverse Mortgages allow borrowers to obtain loan proceeds:
- in a lump sum to cover large
expenses
- in monthly installments to
supplement income
- as a line of credit to draw on as
necessary
There is even a choice for an
immediate cash advance in addition to monthly allotments.
And borrowers can change
funds-distribution plans as many times as they wish. Stay in Your Home with Peace of Mind
There are no income, employment or
credit qualifying restrictions.
Maximum loan amount is based on
age, where borrower lives and the value of the home.
The amount owed can never exceed
property value, so a Reverse Mortgage can never cause
you to lose your home.
The funds received during loan
term, plus any accrued interest, become due when borrower sells or no longer uses the home
as a primary residence.
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