Reverse Mortgages

A Reverse Mortgage is a loan that works like traditional mortgage except in exact opposite. Instead of you making a payment to the bank every month, the bank makes a payment to you every month. These loans are a type of equity loan that allows you as the borrower to take some of the equity in your home and turn it into cash while you live there.

Reverse Mortgages have some very clear cut qualifications. You must be 62 years of age or older and have a certain amount of equity in your home. Depending upon the equity in the home, Reverse Mortgage funds may be paid to you in a lump sum, monthly advances, through a line of credit, or a combination of all three. This depends on the bank of course, but most offer all options. Unlike traditional mortgages, Reverse Mortgages do not require income or proof of ability to pay back because you as the borrower are not making monthly payments. As the borrower you are responsible for taxes, repairs, and continued maintenance.

The Reverse Mortgage becomes due when you move out of the home, sell the home, die, or reach the end of the term on the loan. The bank does not take over title to your home when you die, but your heirs are responsible for what’s owed. Typically the debt is repaid by refinancing the loan into a traditional mortgage or by the proceeds from the sale of the home.

Your Infinity Financial Group representative and a third party company will fill you in on all information associated with a Reverse Mortgage.