What is a Reverse Mortgage?
Available to homeowners who are 62 years of age or older, a reverse mortgage is
a unique government-backed financial tool that may help you achieve your optimum
lifestyle.
- Reverse mortgages can provide a safe way to tap some of your home value. Use
your home to stay at home.
- Reverse mortgages can help seniors enjoy and share their wealth during their
lifetimes.
What are the Benefits of this Tool?
For many seniors, the home is the most valuable asset, especially in an area
like San Diego. Launched in 1994 by Congress, the government-backed reverse
mortgage program (Home Equity Conversion Mortgage) can provide a safe way to tap
some of that home value. The funds can be drawn as needed with flexibility, are
tax free, and there are no monthly payments. While some seniors use the funds to
make their homes more modern or to help with the extra expenses Medicare doesn't
cover (like hearing aids or dental work), there are no restrictions on how the
funds can be used.
Seniors with adult children will experience many attractive new possibilities:
helping an adult child buy a home now, contributing to educational expenses for
grandchildren, or purchasing a second home near their adult children. Reverse
mortgage funds may be critical to help with inflation, replace lost social
security or pension income after a spouse has passed away, or when long-term
care is needed.
Revised 5-9-09