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.

• 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.

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.

• 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.