What is a Reverse Mortgage and how does it work? What are the characteristics of a Reverse Mortgage that make it so unique?
Watch this video to learn more about the difference between a traditional Home Equity line of credit and a Reverse Mortgage:
Simplifying Reverse Mortgages
A Reverse Mortgage is just a mortgage loan. It’s the flexibility of the Reverse Mortgage that makes it unique and different.
Payments Are Optional
You have no monthly mortgage payment requirement, allowing you to improve monthly cash flow for retirement. You can choose to make payments if you want to, but there is no obligation. The only requirements are that the loan can finance a primary residence and that the borrower is responsible for on-going expenses, including property maintenance, annual property taxes, homeowners insurance, and, if applicable, Homeowners Association (HOA) dues.
You Choose How You Use Your Money
A Reverse Mortgage frees up access to money by providing access to your home’s available equity. You can choose to receive monthly income payments, take a lump sum payment, or any combination of both.
Reverse Mortgage Money is Tax Free
The money you receive from your Reverse Mortgage is considered tax-free, so you don’t have to account for it on your annual tax returns.
Avoid the Drawbacks of Home Equity Lines of Credit (HELOC)
HELOCs can be self-defeating. They require you to make monthly payments, which can challenge your retirement cash flow. In addition, HELOCs can be canceled or frozen by the lender at any time, making them unreliable sources of money for retirement. On the other hand, a Reverse Mortgage cannot be canceled by the lender.
We look forward to educating you on how the reverse mortgage can be a useful tool in helping you plan and strengthen your retirement finances.
Please feel free to contact us anytime with questions.
Principal Lending Manager | Owner
Chad has been in the mortgage business for 15 years. He has been focused primarily on reverse mortgages for the past 10 years. Chad has a passion for working with clients 62 and older to provide them with a more comfortable and secure retirement.
Chad enjoys getting to know his client’s. Whether you need 40 minutes or 4 hours, Chad will spend the time to make sure all your questions are answered.
He has worked with hundreds of clients over the years and provides educational seminars to help people understand the benefits of a reverse mortgage.
Chad has a beautiful wife, five energetic young children and a puppy. He enjoys spending his free time mountain biking and golfing.