A Reverse Mortgage allows homeowners—typically age 62 or older—to convert a portion of their home’s equity into cash. Unlike a traditional mortgage, you don’t make monthly principal and interest payments. Instead, the loan balance generally grows over time and is repaid when you no longer live in the home, sell the home, or pass away.
Key Features:
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Access to Home Equity: Convert part of your home’s value into funds without selling.
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No Monthly Principal & Interest Payments: You remain responsible for property taxes, homeowners insurance, and maintenance to avoid loan default.
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Flexible Disbursement Options: Receive funds as a lump sum, monthly payments, a line of credit, or a combination of these methods.
Important Considerations:
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Not a Guarantee: Eligibility depends on meeting lender criteria, property guidelines, and age requirements.
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Effect on Equity: Over time, the loan balance increases, reducing the amount of equity available to heirs.
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Changing Standards: Interest rates, fees, and loan terms may vary and are subject to change without notice.
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Legal Compliance: All offers must comply with federal, state, and local regulations, including the Real Estate Settlement Procedures Act (RESPA).
Next Steps:
Before applying, review all terms and conditions carefully and consult with a qualified, licensed mortgage professional like LaTonia Knox. For more information and personalized guidance, click Contact Us.
Disclaimer: This is not a commitment to lend. All loan products, terms, and conditions are subject to underwriting approval and availability.