What is a reverse mortgage?

Reverse mortgage loans are a way for older homeowners to convert their home's value into tax-free cash, without having to sell or move. Insured by the U.S. government, the Department of Housing and Urban Development (HUD) allows Homeowners who are 62 or older to borrow against the equity of their homes.

Here’s how it works:

Qualifying homeowners can choose to receive tax-free payments from reverse mortgage lenders either on a monthly basis, in a lump sum, or as a line of credit.

No income or credit checks are required.
No repayments are required while a borrower lives in the home.
Social Security and Medicare benefits are not affected.
Reverse mortgage lenders recover the loan amount, plus interest when the home is sold (because owners choose to move, or pass away) When the loan is paid in full, all equity associated with the property will be distributed to your heirs.

Keep in mind:

Reverse mortgage borrowers continue to own their homes. Because there are no monthly loan payments due, the amount owed grows over time. That means that the amount and the remaining equity in the home decreases.
Borrowers must continue to pay homeowner’s insurance and property taxes during the loan period. It is also the borrower’s responsibility to keep up with repairs. In fact, if a borrower fails to adhere to any of these obligations, it may become immediate cause for the loan to become due. In which case, it would become payable in full. Call us today to find out if you qualify for a Reverse Mortgage at 205-983-LOAN or visit our website for more information at:
http://www.saltermortgagegroup.com/loanOptions/