The Nature of a Reverse Mortgage


Homeowners in the age group of 62 and above can utilize the opportunity to retire with money they have accumulated and their credit with a reverse mortgage.

What can a Reverse Mortgage from Intelliloan® do for you?

  • With a reverse mortgage, you can pay off your existing mortgage, which could leave you more money every month to do whatever you wish with.
  • With a reverse mortgage, you continue to own your home, and the title remains in your name.
  • You could use the extra money for an important need or save it for a future requirement.
  • As you still own your home, you will continue to be responsible for paying homeowners insurance, property taxes, and property maintenance expenses.

Who can qualify for a Reverse Mortgage?

  • You should be a homeowner aged 62 years or more
  • Your home could be free and clear, or it could have an existing mortgage.
  • You must have adequate home equity.

How does it Work?

  • You can borrow money based on your age, the value of your home, and current interest rates
  • With the loan, first your existing mortgage (if any) will be paid off. You are free to use the remaining money, whichever way you want.
  • You could make payments with the remaining money, but it is not necessary.
  • You have the option to receive your proceeds as a lump sum, in the form of monthly payments, as a line of credit, or a combination of these three.
  • You are still required to pay homeowners insurance, property taxes, and home maintenance expenses.

Reverse Mortgage Options

Fixed Rate

The interest rate on a fixed rate loan will not change. Whatever rate you lock at the time of closing will remain unchanged throughout the life of your loan. With the fixed rate option, you will receive a lump sum amount.

Adjustable Rate

The interest rate an adjustable rate mortgage will change throughout your loan term. With this option, you can receive the proceeds as a lump sum, monthly payments, a line of credit, or a combination of the three.

Reverse Mortgage Line of Credit as an Effective Retirement Tool

  • The line of credit in reverse mortgage is an adjustable rate loan.
  • The funds available to you can potentially grow in value over time
  • You could utilize money from the line of credit for your living expenses while giving more time to your other retirement assets to grow in value.
  • With the line of credit, you get the flexibility of a traditional HELOC (home equity line of credit) without the monthly mortgage payments
  • If you use a reverse mortgage for purchase, you can buy a home with it without making any monthly payments as long as you live in the home.