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REVERSE MORTGAGE

Retire in a Home that’s Right for You

A reverse mortgage can be used to turn a portion of the equity in your home into cash that can be used for many different purposes that may enhance and extend your retirement. If you currently have a mortgage, a reverse mortgage could eliminate your mortgage payment (taxes and insurance must still be paid, and the home maintained), and also allow you to access any additional equity (over and above your mortgage balance), to create accessible cash which is not readily available while in the form of home equity. You have spent many years putting your money into your home equity, and now with a reverse mortgage, you may be able to convert some of that equity into tax-free cash.*

*This information does not constitute tax advice. Please consult a tax advisor regarding your specific situation.

Types of Reverse Mortgages

Proprietary Reverse Mortgages

Private loans backed by the companies that develop them.

Home Equity Conversion Mortgages (HECMs)

Federally-insured reverse mortgages backed by the U. S. Department of Housing and Urban Development (HUD). HECM loans enable you to withdraw a portion of your home’s equity and can be used for any purpose. How much you can borrow with a HECM or proprietary reverse mortgage depends on several factors, including:

  • your age
  • the type of reverse mortgage you select
  • the appraised value of your home
  • current interest rates, and
  • a financial assessment of your willingness and ability to pay property taxes and homeowner’s insurance.

Home Equity Conversion Mortgage for Purchase (H4P)

An H4P (a type of HECM backed by the FHA) enables senior homebuyers to purchase a new primary residence that better suits their needs and obtain a reverse mortgage in one transaction. You can use an H4P if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing. This type of HECM reverse mortgage, if it is offered in your area, may allow you to:

  • Build a new customized home
  • Relocate closer to friends and family members
  • Purchase a home in senior housing community
  • Downsize to a smaller, easier-to-maintain home
  • Purchase a primary residence suitable for your current needs
  • Move into a new home that’s easily accessible with modern amenities

To learn more about reverse mortgages, please schedule a call today!