Reverse Mortgage Loans

A Reverse Mortgage is a special type of home equity loan for persons 62 and older. Reverse mortgages allow owners to convert some of the equity in their homes to cash (up to $625,500). These funds can be dispersed in the form of a lump sum, a line of credit, fixed monthly payments, or a combination of the three.  The loan does not usually have to be repaid during the homeowner’s lifetime.  Loan advances are not taxable and do not affect the homeowner’s Social Security or Medicare benefits.  Reverse Mortgages are not for everyone, but you may want to consider a reverse mortgage if you are committed to staying in your home and want to increase your monthly available cash.  Advantages include:

• Greater financial independence and quality of life
• Staying in your home and maintaining the title to your property
• You will never owe more than the value of your home
• You make NO payments

Before moving forward with a Reverse Mortgage, you may want to consider a few things.  Federal regulations regarding mortgages are always changing and many sales agents are not familiar with Reverse Mortgages.  The good news is that CarolinaBanker.com has a dedicated Reverse Mortgage Specialist on our team to guide you through this process.