What really is a Reverse Mortgage?

Reverse mortgages are loans that homeowners above the age of 62 are able to use to tap into the available equity in their current primary residence without having to sell the home. Reverse mortgages allow homeowners who are eligible to access the equity in their home in a lump sum payment, a line of credit or in the form of receiving fixed monthly payments.  These types of loans are usually insured by the Department of Housing and Urban Development(HUD) and offer a large degree of flexibility.

Here are some options that reverse mortgages offer:

-Qualified homoeowners are able to select monthly income payments from the loan, a lump sum payment at closing, setup a line of credit or a    combination of these options..
-Reverse mortgages usually do not require any repayments while the borrower is still living in the subject property.
-Reverse mortgages generally do not require any income verification.
-The loan amount is determined based on the age of the youngest borrower and the appraised value of the subject property.

Most reverse mortgage borrowers own their home free and clear or have a small balance that can be paid off from the proceeds of the reverse mortgage.  These types of loans offer cash flow to improve quality of life as well as pay for expenses that have increased due to recent inflationary pressures.  Reverse mortgages can also be used to purchase a home and are not just limited to refinancing.   

PLEASE CALL MOE RAHMAN CRMS AT 630-918 2400 or EMAIL FIRSTCOSMO@FCMORTGAGES.COM NOW TO OBTAIN FURTHER INFORMATION ON HOW TO QUALIFY FOR A REVERSE MORTGAGE!