A Reverse Mortgage is a loan against home equity (not income) providing cash advances to a homeowner/borrower age 62 and over, and requiring no repayment until a future time.
HECM Reverse Mortgage Counseling is an important and mandatory prerequisite to begin working with a lender to obtain a HECM reverse mortgage.
Homeowners aged 62 and over may utilize their equity to establish a line of credit, receive a lump sum, monthly payments and/or get rid of their existing principal and interest payments. This option may offer financial flexibility and security.
Home Equity - the value of a home minus any debt against it
Cash Advances - also known as loan advances, payments, or disbursements
- may be a single "lump sum"
- a series of periodic advances
- a "line of credit"
- any combination - lump sum at closing, then so much per month plus line of credit
Repayment of principle, interest, and loan fees is not required in most Reverse Mortgages until:
- borrower dies
- sells the home
- permanently moves away
For more information, call 303.739.7900