Reverse Mortgage Facts--Sun American Mortgage--Mesa, Arizona

Sun American Mortgage interview Part 2

Reverse Mortgages

A Reverse Mortgage is a loan program that allows you to convert some of the equity in your home into cash while you retain home ownership. A Reverse Mortgage works much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays you. Unlike conventional home equity loans, Reverse Mortgages do not require any repayment for as long as you live in your home. Funds obtained from an Reverse Mortgage may be used for any purpose, including rising health care costs, supplement retirement, home improvements, and travel.

To qualify for a Reverse Mortgage, you must own and occupy your home as your permanent residence. The Reverse Mortgage funds may be paid to you in a lump sum, in monthly advances, through a line-of-credit, or in a combination of the three. The amount you are eligible to borrow is based on your age, the value of your home, and your equity after any liens are paid off.

Because you retain title to your home with a Reverse Mortgage, you also remain responsible for taxes, repairs, and maintenance. Depending on the plan you select, your Reverse Mortgage becomes due with when you permanently move, sell your home, pass away, or reach the end of the pre-selected loan term. The lender does not take title to your home when you pass away, but your heirs must pay off the loan. The debt is usually repaid by refinancing the loan into a forward mortgage (if the heirs are eligible) or by using the proceeds from the sale of your home.

What are people saying about their Reverse Mortgage? AARP National Survey of Reverse Mortgage Shoppers.

 Survey In Brief Document     Survey Source Document