Unlike a traditional mortgage, a reverse mortgage makes payments to you. These customizable Payments can improve your life by supplementing your monthly income, or can be had in a lump sum to cover an unexpected bill.
Our reverse mortgage loans require no repayment as long as your home is your principal residence and you fulfill the borrower's obligations, such as maintaining the property and paying your property taxes. You pay the money back plus interest when you sell or permanently move out of your home.
If you pass away, the loan is due, but the amount due will always be the less of your loan balance or the market value of your home. Even if the amount borrowed exceeds the value of your home, you or your heirs will never owe more than the value of your home. All proceeds in excess belong to your estate, which means they can be passed onto your heirs.
Unlike a conventional mortgage, the loan balance of a reverse mortgage grows larger over time.
With a reverse mortgage you can never owe more than your home's value at the time the loan is repaid.
If you own your home free and clear or if you have very little mortgage principal outstanding, a reverse loan may be for you.