WHAT IS A REVERSE MORTGAGE?
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. There are a few options in how you can receive your cash.
HECM Line of Credit, the equity that you built up over years of making mortgage payments can be paid to you in a lump sum or in monthly payments.
HECM for Purchase, you can purchase a primary residence if you have cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
Unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrower(s) no longer use the home as their principal residence or fail to meet the obligations of the mortgage. Reverse Mortgage Loans are also non-recourse loans which means when the property is sold and the sale of the home doesn’t cover the balance of the loan, the borrower or the heirs to property are not responsible for the difference of the loan. Conversely, if the property sells for more than the amount of the original loan, you or your heirs receive the equity over and above the original loan amount.
RESPONSIBILITY OF HOMEOWNER.
The home owner must be over 62 years old and must keep current on payments for insurance and taxes on the home. As with any other loan, you can default on the reverse mortgage if insurance and tax obligations are not timely met.
THE LENDER IS NOT ON TITLE AND DOES NOT OWN YOUR HOME!
Multiline Mortgage can walk you through the details of a Reverse Mortgage. In fact, our Founder, Joseph T. Powers, had personally been through the process and enjoyed the benefits of his reverse mortgage. After passing away in 2019, his heirs inherited the balance between what he owed on the mortgage and the value of his home. Just like any other home mortgage. Contact us today to find out more!