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Our Loan Programs | Reverse Mortgages
Is a Reverse Mortgage right for you?
- Are you and your spouse 62 years and older?
- Would you like to eliminate mortgage payments?
- Do you have equity in your home?
- Do you need supplemental income?
- Do you need cash for unexpected expenses?
- Do you need to replenish your savings?
What is a Reverse Mortgage?
A Reverse Mortgage is a loan that enables eligible homeowners to access the equity they have in their homes. Many people consider Reverse Mortgages because they find themselves in need of extra income or want a cushion against the unexpected.
Borrowers receive monies from the mortgage company based on the equity in their home. Money from the Reverse Mortgage is received in a lump sum, through a line of credit or in monthly payments depending on the borrowers preference and qualifications. The loan is not repaid until the property is sold or the borrower permanently leaves the home.
How much can I get?
The amount of money you receive is dependent on several factors: your age, the value of your home, the FHA limits in your county and current interest rates. The general rule of thumb is the older you are and the more equity you have in your home, the more money you receive.
Here is an example of a Reverse Mortgage based on the following information:
Current Age: 76
Home Value: $230,000
Liens: $0
| Counties |
Boulder
Adams
Jefferson
Denver |
Weld |
Larimer |
Cash
Available
OR |
$151,000 |
$139,000 |
$142,000 |
Monthly
Income
OR |
$1000 |
$925 |
$950 |
Credit
Line |
$151,000 |
$139,000 |
$142,000 |
Figures are subject to change based on interest rate at time of closing.
Frequently Asked Questions:
Can I get a Reverse Mortgage if a conventional mortgage is already in place? Yes, you will pay off your existing mortgage at closing through funds you receive from your Reverse Mortgage.
What are the costs? Reverse Mortgage fees are similar to traditional mortgage fees.
Are there any limitations to how I can spend my money? No, you can spend the money as you wish.
Who really owns my home? You do. A Reverse Mortgage is a lien just like a traditional mortgage. Repayment is required when the last surviving spouse sells the house, moves away or dies.
Will a Reverse Mortgage affect my Social Security, Medicare or Pension benefits? No. A Reverse Mortgage will not affect Social Security, Medicare, or Pension benefits.
Do my heirs have to sell the property to repay the loan? No, your heirs can repay the loan by simply refinancing the outstanding balance into a conventional loan.
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