Reverse Mortgage

Here’s how a reverse mortgage works: when you place your property on the market, you’ll be able to access a portion of the equity in that home. Once we’ve analyzed your financial situation and determined whether or not it’s the best course of action for you, we’ll work with your lender and other parties to provide you with peace of mind.

The way a reverse mortgage works is very similar to a traditional mortgage, except, instead of homeowners paying the lender every month, the opposite happens. The lender pays the homeowner, as longs as they stay in the home. The funds received can also be used for anything, including repairs, taxes, insurance and more.

When you’re eligible for a reverse mortgage, the lender will take the equity out of your home. Some examples are lump sum, monthly advances, or a combination of the two. The amount of money that you can borrow depends on your age and the lender’s interest rate.

Most reverse mortgages give the borrower ownership of their home, but with this responsibility comes a few caveats. What if you need to make repairs? Who will pay for them? How about taxes? As the borrower, you’ll be responsible for these expenses, so it’s important to keep that in mind when choosing to pursue a reverse mortgage.

There are three different ways your reverse mortgage can be paid off. If you move out of the house, the loan will end with interest and the home will go back to being owned by the bank. If the owner dies, there is no break in ownership. Instead, their descendents will inherit the loan and must try to refinance it or sell it asap.