The myths, facts and benefits of Reverse Mortgage

Financing your retirement or lifestyle.

We all have retirement dreams. No matter what you want to do, you need a financial plan to make those dreams come true.

A Reverse Mortgage, of which the FHA Home Equity Conversion Mortgage (HECM) is the most common type may help. HECMs are loans that allow seniors age 62 or older to convert a portion of their home equity into cash, with a maximum loan amount set annually by the Federal Housing Administration. There are other proprietary portfolio reverse mortgage products are available for those as young as 55 or for unique properties and jumbos not covered by the FHA HECM.

The funds are advanced against the value of your equity, and interest accrues on the outstanding mortgage balance. Your only monthly responsibility will be to pay property taxes, homeowners insurance, and HOA/condo dues if applicable. The reverse mortgage Is repaid when you move out of the property, sell the property, or when the last borrower passes away.*

We also offer Reverse Mortgages, which are proprietary jumbo products available to those 55 and older with loan amounts up to $4 million.**

What you can do with a HECM:

Eliminate your current mortgage

Pay day-to-day expenses

Right-size with a HECM for Purchase

Meet long-term care expenses

Make home modifications

Defer Social Security

Build an emergency fund

And so much more!

Reverse Mortgage myths and facts

Don’t listen to rumors. Review these Reverse Mortgage myths and facts to help you understand the program.

Myth: I won't own my home

Fact: Just like a regular mortgage, you keep the title to your home. The lender's interest in your property extends only to the balance of your reverse mortgage loan.

Myth: I won't have anything to leave my childreno leave my children

Fact: The loan is not due until the last borrower dies, moves out, or sells the home. If you pass away, your heirs can either sell the home or refinance. The reverse mortgage lender will receive the amount owed on the loan. In addition, you cannot borrow the full appraised value of your home, and home values have risen steadily in recent years.

Myth: I can't sell my home

Fact: You can sell your home just as you would if you had a regular mortgage. The reverse mortgage will be paid off with the proceeds from the sale, and you will receive the remaining funds.

Myth: I'll have to make mortgage payments

Fact: You will no longer need to make monthly mortgage payments, but you will be responsible for property taxes, homeowners insurance, HOA/condo dues (if applicable) and home maintenance.

Myth: I'll have to pay taxes on the funds I receive from the loan

Fact: Proceeds from a reverse mortgage are usually tax free, but you should always consult your tax advisor to make sure you understand any tax consequences.

Myth: There are restrictions on the way I can use the funds from the loan

Fact: You can use the proceeds from a reverse mortgage any way you wish, but your home may be your greatest asset, and wise use of these funds can give you greater security in retirement.

Myth: I should only consider a reverse mortgage as a last resort

Fact: Rather than considering a reverse mortgage as a last-ditch effort to raise retirement funds, make it part of your comprehensive retirement planning.

The myths, facts and benefits of Reverse Mortgage

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What you can do with a HECM:

Reverse Mortgage myths and facts

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