For homeowners age 62 and older

Chances are your home has significantly appreciated since you purchased it, making it one of your most valuable assets. If you are age 62 or older, a reverse mortgage may provide you with maximum financial flexibility to meet your unique needs.

What is a reverse mortgage?
It's a special type of home equity loan that enables homeowners age 62 and older to unlock the equity in their home and receive a tax-free source of cash. With a reverse mortgage, you don't make payments - you receive them. This type of loan is not due or payable as long as you occupy your home as your primary residence.

How do I qualify for a Reverse Mortgage?
It's easy! To qualify, you must:

• Be at least 62 years of age
• Occupy your home as your primary residence
• Own your home free of debt or have a small mortgage balance remaining

How much money can I receive with a reverse mortgage?
Your age and your home's market value determine the amount of money you can receive.

Are there any restrictions on how I use my reverse mortgage funds?
Absolutely not! You can use the funds for whatever purpose you choose, such as:

• Home improvements/repairs
• Travel
• Medical expenses
• Investments
• Debt repayment
• Automobiles
• A second home or condominium
• College funds
• Increasing your monthly cash flow

What is the interest rate on a reverse mortgage?
Just like regular mortgages, the interest rate depends on current market conditions. Rates are typically competitive with other types of mortgage products.

What costs are involved with a reverse mortgage?
Costs are similar to other types of mortgages, such as the required property appraisal, attorney's fees, title insurance, loan origination fees and recording fees. However, none of these fees need to be paid out-of-pocket; they can be deducted from the proceeds of the loan. Certain programs may require a mortgage insurance premium. Ask a Reverse Mortgage Specialist for details.

How do I know if a reverse mortgage is right for me?
Before applying for a reverse mortgage, you are required to attend an informational counseling session conducted by an independent non-profit agency to help you determine whether a reverse mortgage is right for you. For your peace of mind, we encourage you to include family members or trusted friends in the process.

What about my heirs?
Your remaining assets are completely protected. Depending on how long you participate in the reverse mortgage program and how much equity you retrieve from the home, after repayment (by the sale of the home or other means), the remaining equity stays with your estate.

How can I receive the money once I qualify?
The following mortgage payment options are available depending on your individual needs:

Term option: You may receive equal monthly payments for a fixed period of time that you select.

Tenure option: You may receive equal monthly payments for life as long as you occupy your home as your primary residence.

Line of credit option: You may draw up to a maximum amount of cash at the times and amounts of your choosing.

Lump sum option: You may receive a lump sum payment at closing.

Or a combination of the above, for example: You may set aside a portion of your equity for a line of credit or lump sum payment and receive the remainder in equal monthly payments for life, as long as you occupy your home as your primary residence.

What are the benefits of a reverse mortgage?

• Tax-free source of cash
• There are no income or credit requirements
• You retain ownership of your home
• Supplemental funds to use as you wish
• You can eliminate your house payments
• Flexibility in the way you can receive your funds:
  • Direct deposit
  • Lump sum payment
  • Line of credit

How can I get more information on a reverse mortgage?
E-mail us or call us at (203) 438-6518 or toll-free (outside the local area) at 1-800-776-6518 and ask to speak with a Reverse Mortgage Specialist.

Reverse mortgage loans originated herein are serviced by Financial Freedom Senior Funding, Inc.

Top of Page