The Opposite of a Traditional Mortgage,
a Reverse Mortgage Pays You Money!
Taking a loan to buy a home means borrowing that debt to increase equity and wealth in the home. With a reverse mortgage, the opposite is true. Instead of making payments, a reverse mortgage borrower uses equity to gain income. Throughout the life of the loan, the balance gets larger while the equity gets smaller.
Reverse mortgage are helping older Americans across the country achieve greater financial security and enjoy their retirement years to the fullest.
Imagine having the income you need to remain living comfortably in your home in retirement and at the same time make much
needed repairs or renovations, afford quality home healthcare or even vacation with family and friends. Nearly 150,000 older
 Americans have done that thanks to the reverse mortgage, a unique financial security tool that gives older Americans the freedom and peace of mind to fully enjoy the retirement years.
A reverse mortgage is a loan that allows seniors to use the equity they’ve accumulated in their homes over the years to improve their quality of life and knock down the financial barriers to independent living. By converting equity into income, a reverse mortgage is a way to stay in your home and receive cash to use for any purpose- whether it’s day to day living expenses, home
remodeling or repair, paying off your existing mortgage or debt, earning a college degree, or traveling the world. Best of all, you retain the title and you remain living in your home.
Homeowners who are 62 years or older can qualify, and there is no income qualification. The size of the reverse mortgage granted depends upon the applicant’s age, the type of reverse mortgage sought, the home’s value, and interest rates.
For as long as a reverse mortgage is outstanding, no monthly mortgage payments are required. The loan matures when the borrower no longer occupies the home as a primary residence. This typically occurs upon the sale of the home, or if the owner permanently moves or passes away.
Reverse mortgages are a big part of our commitment to helping even more people meet the challenges that make staying in their homes and living independently a dream come true.
“No longer do I have to tell myself I can’t have something…once again, I am able to relax and enjoy the life I’ve created with my friends. No problem meeting the expenses for my medications, which is a significant cost to cover my current medical conditions. I am happy, enjoying living, playing bridge and keeping my mind active.”
Making a Reverse Mortgage WORK FOR YOU.
We make it as easy as possible for you to obtain the reverse mortgage that’s right for you. We’re with you every step of the way, helping to customize a loan that meets your unique needs. And because we know these decisions can sometimes be challenging, we encourage you to seek the advice and counsel of those you trust most- your family, friends, attorney, and accountant.
1. GETTING STARTED
If you want to learn how a reverse mortgage will work for you, a loan advisor will visit you in your home and explain the benefits, features, income options, and costs.
2. RELEASING EQUITY IN YOUR HOME
The amount of funds available is generated based upon the following:
- Appraised value of the home or maximum lending limit
- Borrower’s age
- Current interest rate
3. TAKING ACTION
When you are ready to move forward, we will assist you in completing an application request and schedule a counseling session with an approved
counselor.
4. GAINING INDEPENDENCE AND REMAINING IN CONTROL
A lien is recorded against the home, but the borrower will retain title to the property and remain in control of the home. The borrower continues to have the responsibility for maintaining the home in reasonable condition and paying property taxes and insurance premiums.
5. REAPING THE REWARDS OF A REVERSE MORTGAGE
Borrowers have many specific reasons for electing a reverse mortgage. Some are needs-driven; others enhance quality-of-life choices. Possible uses of a reverse mortgage are nearly endless, as the money the borrowers receive belongs to them. It is theirs to do with as they wish.
Reverse Mortgage Fast Facts
- All borrowers must be 62 years or older
- No repayment is made until the home is sold or the owner permanently moves out or passes away
- You will never owe more than the current market value of your home at the time the loan becomes due
- No income qualification
- Interest is paid at the time the loan is repaid
- When the loan is due, your heirs have choices- they can repay the loan and keep the house, or sell the home and repay the loan
- Social security benefits and Medicare are generally not affected by a reverse mortgage- consult appropriate government agencies.
- You own your home- the lender does not take control of the title
- Typically, interest rates are adjustable and can change periodically
- Closing cost and fees incurred can be financed as part of the loan
Reverse Mortgage Frequently
Asked Questions
Q. How much money can I receive?
A. The amount of money you receive is dependent upon several factors: your age, the value of your home, current interest rates and the specific plan you choose. Your Loan Advisor can help you determine which plan best meets your needs. While each individual’s situation is different, as a rule of thumb the older you are and the higher your home’s appraised value, the more money you receive.
Q. What are the costs?
A. Costs vary from one program to another. That's why we offer a
variety of programs to meet a variety of needs Most reverse mortgages, however, have costs similar to traditional mortgages such as interest charges, origination fees, closing costs, inspections and insurance.
Q. When does the loan become due and payable?
A. As long as property taxes and home insurance are paid, and the home is kept in good working order, the loan is due and payable when the borrower sells the property, permanently leaves the home, or passes away.
Q. Can we make the process easy?
A. We have worked hard over the past several years to simplify the process. We believe the first step is the most important. That’s when you and your Loan Advisor review your goals and objectives and decide which plan best meets your needs. Once you are comfortable that you are making a good decision the process moves forward.
Q. Who should I look to for advice?
A. Decide who you trust, then discuss your intentions with them. It may be your attorney, a financial advisor, AARP, a family member or close friend. We want you to feel confident in your decision.
Q. Are there any restrictions on what I can do with my money?
A. You can use the proceeds to whatever end you choose. After all, it is your money.
Q. Whose name is on the home’s title?
A. Yours. The borrower retains title to the property. A reverse mortgage is
a lien just like a traditional mortgage.
Online
Reverse Mortgage Calculator
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reverse mortgage eligibility and view
more program information.
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Getting Started is Easy!
We will be happy to meet with you at your convenience to discuss your needs.
To set up a meeting with a member of the Omni Mortgage staff,
please Contact
Us today.
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