For many senior homeowners 62 years old or older, the increasing day-to-day cost cost of living combined with the rising cost of healthcare and prescription drugs, can make it difficult to manage their finances each month. Therefore, many of these senior homeowners are turning to a Reverse Mortgage as a tool to convert available equity in their home into cash. This cash can be be setup as a monthly distribution, a credit line or received as a lump sum which helps supplement retirement with TAX FREE income!

With a Reverse Mortgage you retain full ownership to your home and you don't have to repay the Reverse Mortgage as long as you live in your home. You can use the cash for what every you desire without restrictions.

What is a Reverse Mortgage?

A reverse mortgage is a low-interest loan for senior homeowners that uses a home's equity as collateral. The loan amount is a percentage of the home's value determined by the age of the youngest homeowner. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away.

What are the different types of Reverse Mortgage Options?

• The majority of reverse mortgages are Home Equity Conversion Mortgages (HECM). This type of loan is guaranteed by HUD and the Federal Housing authority, and may include a line of credit, which can appreciate, provide various payment options and a maximum loan limit that varies by location.
• The Private Cash account reverse mortgage is usually reserved for homes worth over $500,000. This type of reverse mortgage offers a growing credit line, flexible payment options, and often comes with higher closing costs.

How much am I eligible for:

The amount of cash you can get also depends on the specific reverse mortgage plan or program you select. The differences in available loan amounts can vary greatly from one plan to another. Most homeowners get the largest cash advances from the federally insured Home Equity Conversion Mortgage (HECM). HECM loans often provide much greater loan advances than other reverse mortgages.

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

Contact a EquiPoint Financial Reverse Mortgage Specialist who can explain the difference without cost or obligation.

EquiPoint can arrange for you to receive your Reverse Mortgage proceeds as follows:

• A cash lump sum
  
• Schedule monthly payments
  
• As a line of credit
  
• Or any combination of the above three options.

Some Reverse Mortgage facts you should know:

• A Reverse Mortgage loan is not due or payable until the last surviving borrower dies, you sell your home, or you permanently leave the residence for which the loan was originated.
  
• Property taxes and homeowner insurance still must be paid and kept current. Note: You can use your proceeds to cover these costs if desired.
  
• When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.
  
• For those who sign the Reverse Mortgage loan documents will be required to attend a HUD (Department of Housing and Urban Development) counseling session. We can tell you when and where these sessions take place. 

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