REVERSE MORTGAGE
What is a Reverse Mortgage?
A reverse mortgage is a financial product designed for homeowners who are aged 62 or older (with some exceptions starting at 55) to convert a portion of their home's equity into cash. Unlike traditional mortgages where borrowers make monthly payments to the lender, a reverse mortgage allows homeowners to receive payments from the lender based on the equity they have built up in their home and to never have to make a mortgage payment.
Get a Quote
Who is eligible for Reverse Mortgage?
Eligibility for a reverse mortgage is primarily based on the homeowner's age, home value, and equity. The homeowner must own the property outright or have a significant amount of equity in it. The home must also be the primary residence of the homeowner.
One of the key benefits of a reverse mortgage is that it allows homeowners to tap into their home equity without having to make monthly mortgage payments. Instead, the loan is repaid when the homeowner sells the property, moves out of the home, or passes away. This can provide valuable financial flexibility for retirees who may be looking to supplement their income, cover medical expenses, or fulfil other financial needs.
Features
✔Access to Home Equity:
Reverse mortgages allow homeowners to tap into their home's equity without selling the property. The loan amount is determined by factors such as the borrower's age, home value, and interest rates.
✔Payment Options:
Homeowners have flexibility in how they receive the payments from a reverse mortgage. They can choose to receive a lump sum, a line of credit, fixed monthly payments, or a combination of these options. The chosen payment method should align with the homeowner's financial needs and goals.
✔Homeownership Retained:
With a reverse mortgage, homeowners retain ownership of their home and can continue to live in it as long as they meet the loan requirements, such as maintaining the property and paying property taxes and insurance..
