What is Reverse Mortgage?

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A reverse mortgage is a loan for senior homeowners, age 62+, who own the home and occupy it as primary residence. There are several ways to receive the loan proceeds from a reverse mortgage:
  • Lump Sum at closing
  • Term – equal monthly payments to homeowners for a fixed number of years
  • Tenure – equal monthly payments as long as the homeowner lives in the home
  • Line of Credit
  • or combination of the above
“Term” is the common form for reverse mortgage. Homeowners often use it as a source of tax free retirement income. They will not lose social security or medicare benefits. Reverse mortgage provides greater financial freedom and control, providing you with extra security during retirement.
Not many lenders are doing reverse mortgage. If you are interested, please make sure you understand all the terms and conditions. There are certain costs involved as well.
* Message from your Real Estate and Mortgage Broker, Andy Lamandyjustsold@gmail.com, 408-218-2513

Home Equity Line vs Reverse Mortgage

Both home equity loan and home equity line are second mortgage, have income and creditworthiness requirements. The homeowner must make monthly payments to repay the loans.
A reverse mortgage generally has no credit score requirements. The homeowner receives cash from the lender, and does not have monthly payment.
Both cases require the homeowners continue to pay required property taxes, homeowners insurance, and maintain the home in good standing.
* Message from your Real Estate and Mortgage Broker, Andy Lamandyjustsold@gmail.com, 408-218-2513