Is a Reverse Mortgage Right for You?

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What is a Reverse Mortgage?

A reverse mortgage is a type of home loan for seniors ages 62 and older. Reverse mortgage loans allow homeowners to convert their home equity into cash income with no monthly mortgage payments. They can be a great financial decision for some seniors but a poor financial decision for others. Be sure to understand how reverse mortgages work and what they mean for you and your family before borrowing.

What is Required for a Reverse Mortgage?

  • Property Type - If you own a house, condominium, or townhouse, or a manufactured home built on or after June 15, 1976, then you may be eligible for a reverse mortgage.
  • ​Age, Equity, and Fees - You must be at least 62 years old, and you must either own your home free and clear or have a substantial amount of equity (at least 50%). Borrowers must pay an origination fee, an up-front mortgage insurance premium, other standard closing costs, ongoing mortgage insurance premiums (MIPs), loan servicing fees, and interest.
  • ​Counseling - The U.S. Department of Housing and Urban Development requires all prospective reverse mortgage borrowers to complete a HUD-approved counseling session. This counseling session, which usually costs around $125, should take at least 90 minutes and cover the pros and cons of taking out a reverse mortgage given your unique financial and personal circumstances.
  • ​Collateral Protection - Your responsibilities are to stay current on property taxes and homeowners insurance (and homeowners association fees, if you have them) and keep the home in good repair.

Get the Financial Freedom You Deserve!

James Stout

Mortgage Loan Advisor  NMLS # 337513 | Company NMLS #200719 Legendary Home Loans Direct: (954) 993-6150 Email: james@legendaryhl.com

1499 W. Palmetto Park Road

Suite 109

Boca Raton, FL 33486

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