Slide 1
REVERSE
MORTGAGES
Use Equity In Your Home
To Provide Financial Stability

REVERSE MORTGAGES

Reverse mortgages enable eligible borrowers to take a significant amount of cash out of their homes. Depending on the type of reverse mortgage, borrowers can take cash out:

• In a lump sum
• In equal monthly disbursements
• As a line of credit over time

The most compelling features of a reverse mortgage are that borrowers do not make monthly mortgage payments and that the proceeds from a reverse mortgage are tax-free.
To qualify for a reverse mortgage, at least one borrower must be at least 62 years old, and the borrowers must demonstrate the ability to pay for ongoing monthly housing expenses, including taxes, insurance and property maintenance.
Additionally, reverse mortgages are best suited for borrowers with significant equity in their homes. The more property equity you have, the greater the proceeds you can receive from a reverse mortgage.

Reduce Mortgage Payment

One of the most popular reasons to get a reverse mortgage is to eliminate your monthly mortgage payment. With a reverse mortgage, instead of making a monthly mortgage payment and paying down your mortgage over time, your monthly interest expense is added to the principal balance of the mortgage.

Pay Off Mortgage & Debt

Borrowers who get a reverse mortgage are required to pay off their existing mortgages. Additionally, in many cases, borrowers with funds remaining after paying off their mortgages decide to pay off or pay down debt such as credit card or car loans.

Improve Cash Flow

Paying off your existing mortgage and other debt significantly reduces your monthly costs and improves your cash flow. This reason for getting a reverse mortgage is especially applicable for borrowers who live on fixed incomes. Using a reverse mortgage to lower your monthly costs enables you to stretch your monthly income further.

Remodel Your Home

Many borrowers want to do a significant home remodeling or renovation project but do not want to incur additional debt or increase their monthly mortgage payments. A reverse mortgage enables borrowers to access a significant amount of equity in their homes for a major home renovation while eliminating their mortgage payment.

Pay for College

One of the best features of a reverse mortgage is that there are no restrictions on the use of the proceeds after you pay off your existing mortgage (if you have one). You can use a reverse mortgage to remodel your home, buy a new home or even pay for college tuition for a child, grandchild or yourself.

Cover Unforeseen Costs

A very important feature of a reverse mortgage is the ability to obtain a line of credit for current or future needs that can include covering costs for healthcare and both short and long-term care.
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