What is a Reverse Mortgage?

A Reverse Mortgage (also known as a Home Equity Conversion Loan) enables homeowners 62 years or older the opportunity to tap into their equity without selling their home. The lender pays money based on the equity ones accrued in their home;

 The homeowner can receive funds:

                                                 1) lump sum

                                                 2) monthly payment

                                                 3) line of credit

Repayment is not necessary until the borrower sells the property, moves, or passes away. When the borrower sells their home or no longer uses it as their primary residence, the loan must be paid back to the lender just like a forward mortgage.

Who are ideal candidates for a Reverse Mortgage?

With the high cost of living, longer life span, medical expenses always on the rise and possible unforeseen issues that may occur, the Reverse Mortgage through First American Mortgage Company provides the peace of mind and comfort that there is a solution to living a happier life.  How nice it would be to know that financially one can eliminate the stress and worries of excessive bills.

Interest rates can be fixed or adjustable and the money is TAX-FREE; does not interfere with Social Security or Medicare benefits.

The lender cannot take property away if the borrower outlives their loan nor can one be forced to sell their home to pay off their loan even if the loan balance grows to exceed property value.