Convert Your Equity into Cash
What is a Reverse Mortgage
Reverse mortgages are loans that can be beneficial for the financial security for qualified seniors. Specifically for those ages 62 and over who have sufficient equity in their homes. The funds from a reverse mortgage loan can help seniors supplement retirement income, pay off debt, pay for medical care, or make home improvements and repairs.
How Do Reverse Mortgages Work?
- No monthly mortgage payments, homeowner is responsible for property taxes, insurance and maintenance
- Fixed and adjustable rate options
- Loan does not have to be repaid until the last surviving homeowner on the title permanently moves or passes away as long as other contract obligations are met
- Estate is not liable if the home sells for less than the balance of the reverse mortgage loan
Reverse Mortgage Option
- A lump sum of cash at closing*
- Equal monthly payments as long as the homeowner lives in the home
- Equal monthly payments for a fixed period
- Growing line of credit that the homeowner may draw any amount at any time until the line of credit is exhausted
- Any combination of the above
*Up to the 60% utilization rule for the 1st 12 months
With a reverse mortgage loan the amount is determined by a formula that considers the borrower’s age, current interest rate, and the lesser of the appraised value of the home, sale price or lending limit. Contact an On Q Mortgage Consultant for full details and to see if a Reverse Mortgage might be right for you.
Homeowner continues to pay insurance and property taxes, live in as primary residence and maintain home. This program may not be available in all states. This material is not from HUD or FHA, nor was it approved by HUD or FHA. Program details and qualifications are subject to change without notice. Some reverse mortgage products are provided by an On Q Financial Business Partner.