M.J. (Merri-Jane Lani) Viglizzo NMLS 93606
Mortgage Advisor
M.J. (Merri-Jane Lani)  Viglizzo NMLS 93606

Office: 831-751-2209
Fax: 831-751-2994

What is a Reverse Mortgage?

A Reverse Mortgage is a home loan (used for any purpose) where seniors, 62 and older, can access the equity (cash) built up in their home.

There are several different Reverse Mortgage programs. Fannie Mae Home Keeper®, the HUD-insured Home Equity Conversion Mortgage (HECM) and the Jumbo Cash Account Plan are three such programs. As demand increases, more Reverse Mortgage programs from different organizations will become available.

It is called a Reverse Mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. All interest is paid at the end of the loan, rather than in the beginning. What are some of the benefits of a Reverse Mortgage?

  • Strengthen your personal and financial independence.
  • Help pay for health care or other needs.
  • You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
  • The loan is only paid off when the house is sold by you or your heirs, all borrowers move out of the house, or through a refinance.
  • You keep your Medicare and Social Security benefits.
  • You can use it as a credit line and draw upon it as needed.
  • If desired, you can obtain all your cash upfront.
  • Get the best of both-obtain cash upfront and have a balance in reserve to use as a credit line.
  • No Income Requirements: The homeowner does not need to be employed and is not qualified based on income or credit.

As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.

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