Reverse Mortgages

Reverse Mortgage Calculator
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What is a Reverse Mortgage?
A reverse mortgage is a special type of home loan that lets the homeowner turn the equity of his or her home and convert it into cash. No repayment is required until the borrower no longer uses the home as their principal residence. The most popular reverse mortgage on the market today is the FHA HECM (Home Equity Conversion Mortgage) which is federally insured by the government.

Are there any age restrictions?
All parties on the title must be at least 62 years old. The older you are the more money you get.

Are the payments taxable?
No. The payments are not subject to income taxes because you are just borrowing on your home.

Do I still pay property taxes and insurance?
Yes, you are on the title, and you must pay the taxes, insurance, and upkeep as you do now. This is just a loan against the property.

Does the lender take my home when I die?
Absolutely NOT. When the last surviving spouse passes away, the loan becomes due. The heirs or estate can sell the house, pay off the existing mortgage (as you would have with any mortgage on the property), and keep whatever is left. If you have borrowed more than the property is worth, your estate can deed the property back to the FHA.

Will my children or estate owe more on my home?
No. The house stands for the debt. No debt will ever be passed along to the heirs.

When is the loan due?
When none of the borrowers are remaining in the home, the loan is due. The family or estate can sell the house and pay off the debt as with any other loan on the property.

Are only single family homes eligible?
No. Single family homes, condominiums, and PUDS are eligible.

What happens if my spouse passes away?
As long as one of you remains in your home, no repayment is required.

Enjoy Your Golden Years
You Can Afford to Stay in Your Home
No Repayment As Long As You Live In Your Home
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