Reverse Mortgages

(also called home equity conversion loans)

A Reverse Mortgage enables homeowners age 62 and older to tap into their equity without selling their home. Just like a forward mortgage you maintain the title to your home but, you will never make another mortgage payment.
    The lender pays you money based on the equity you've accrued in your home; You have several choices as to how you receive  the money; you can take it all immediately in a lump sum, receive a monthly payment, an equity line of credit or any combination of the above. There are no guidelines or restrictions how you can use the money, but there are advantages to keeping your money in a line of credit. The line of credit allows your savings to grow at a higher interest rate
    Now, you can even purchase your next home with a Reverse Mortgage and your down payment. Because their is no income, credit qualifying or medical requirement, many seniors are using a reverse mortgage to payoff their existing mortgage late or default. If you already have a reverse mortgage and the value of your home has increased, you can refinance into a new reverse mortgage and get more cash.
    Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. Neither you nor your heirs will ever owe more than the sales value of the home. Typically your heirs will still receive equity after the sale and payoff of the loan. A reverse mortgage does require you be at least 62 years of age and maintain the property as your principal residence, at least 183 days a year.
    Reverse mortgages are ideal for homeowners who are. retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable. Neither does it interfere with Social Security or Medicare benefits.
    Your lender cannot take your property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed the property value.

To learn more call Kathy Hessberger at Jacob Dean Mortgage 301 809-1568 or 1-877-439-2665