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Frequently Asked Questions.

What is a reverse mortgage?

A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income-without having to sell their home, give up title , or make monthly mortgage payments. The loan only becomes due when the borrower permanently leaves the home.

* Consult Tax Advisor. Not all products available in all states.

What is a reverse mortgage?

Remain independent:  A reverse mortgage allows you to remain in your home and retain home ownership.

Stay in your home: It allows you to remain in your home and retain home ownership.

No monthly mortgage payments: You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.

Tax-free money: Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits.

Freedom and flexibility: The money you get from a reverse mortgage is yours to use in any way you choose.

* Consult Tax Advisor

How does a reverse mortgage differ from a home equity loan?

Both a reverse mortgage and a home equity loan use the equity you have built up in your home.

They differ in that with a home equity loan you must make regular monthly payments of principal and interest. However, with a reverse mortgage you do not make any monthly mortgage payments for as long as you stay in the home.

When must a reverse mortgage loan be re-payed?

Your reverse mortgage loan becomes due when: 

All borrowers permanently move out of the home or  the borrower passes away or sells the home.

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