KNOWLEDGE CENTER

Home equity

HOW IT WORKS

You live in a home that you've watched increase in value for years. You find it difficult keeping up with bills and healthcare expenses. You're faced with a dilemma: sell the house - your home, which really doesn't have a price tag - or continue to live in it and watch your financial burden increase. Now imagine this dilemma resolved.

Enter the reverse mortgage loan

A reverse mortgage allows you to draw on the equity in your home without having to sell it. A "reversal" of a conventional mortgage where you would pay monthly principal and interest payments, a reverse mortgage is a loan that may allow you to receive monthly payments. The loan is repaid when you either sell your home, the last borrower (or eligible non-borrowing spouse) passes away or no longer live there as their principle residence*. As a borrower you must continue to pay property related fees, taxes and insurance, and must maintain the home in good condition. You can use the cash payments as you wish: to supplement your retirement income, make home improvements, pay bills, or vacation. It's all up to you.

Deciding whether or not to go forward with a reverse mortgage is a big decision. If you are still learning about reverse mortgages call Doug Quinn at 469-607-8808 and I can answer all your questions.

MYTH

  • You lose your home
  • It's only for broke people
  • It's free money
  • My equity isn't safe

FACT

  • You retain title to your home*
  • It's a specialized loan and many retirees use it
  • Your equity is not subject to the housing market
  • Reverse mortgages that are FHA-insured (Home Equity Conversion Mortgages) are insured by the Federal Housing Administration providing protections for both borrowers and lenders

*There are some circumstances that will cause the loan to mature and the balance to become due and payable and the home may have to be sold to repay the debt. Borrower is still responsible for paying property taxes and insurance. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Loan rates, fees, terms and conditions are not available in all states and subject to change.

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