Life expectancy has risen over the past ten years and we are living longer. This has created a problem for many people in that their pensions and social security are not sufficient enough to allow them to live in the manner to which they have become accustom. Many retired persons have significant equity in their homes and could consider a Reverse Mortgage to help supplement their income. Below are some facts to consider if you find yourself in this situation:

• A reverse mortgage is a home loan that allows you to take money from the equity in your home without selling it, signing the title over to anyone, or taking on a new monthly payment.
• This loan has no income or employment restrictions. It does however require the borrower to participate in a counseling session with a HUD approved agency prior to closing this loan.
• All co-owners must be 62 years old
• Your home must be your primary residence. No second homes or investment properties will be considered.
• You must own your home free and clear or have a very small balance that must be paid off with the proceeds of the reverse mortgage
• You can receive your reverse mortgage proceeds in one lump sum, in a fixed monthly payment, as a line of credit that you draw on as you need it or any combination of the three options. You may also change payment options as many times as you wish until your funds are exhausted.
• You may repay the loan in whole or in part any time without a pre-payment penalty.
• The outstanding loan balance will come due when you no longer occupy your home as your primary residence(i.e. move in with family or pass away)
• The interest rate on a reverse mortgage is an adjustable rate mortgage
• The amount you can borrower is based on a HUD formula that factors the age of the youngest homeowner, the interest rate, and the appraised value.
• Loan proceeds are not considered income and will not affect Social Security or Medicare benefits however consult your tax advisor before you enter into this loan.