Rick Bossom, AMP

What is a Reverse Mortgage?

A reverse mortgage is a financial tool which provides seniors with funds from the equity in their homes. Generally, no payments are made on a reverse mortgage until the borrower moves or the property is sold.  The final repayment obligation is designed to not exceed the proceeds from the sale of the home and because the reverse mortgage is based on the equity of your home, qualification of income and credit information is not as important as the home itself.  

The four main benefits of a reverse mortgage are:

Generate more income

Preserve investments assets

Enhancement of lifestyle

Minimize taxes

You will need to be 60 years or older in age and the maximum loan amount is 40% of the value of your home.  The funds can be advanced in one lump sum with some now and the remaining amount later, a set schedule of payments, or even a lump sum now followed by scheduled payments.  

The benefits of a reverse mortgage can be amazing.  It can increase the quality of life through renovations to the home, supplementing pension incomes or creating back up emergency funds and should be looked into a part or your retirement plan.

For more information about a reverse mortgage please use the contact page below.

Having a mortgage broker arrange your mortgage increases your financial options.  Most times you do not pay for this service; you save time and money.