Reverse Mortgages
Today, record numbers of people are using
reverse mortgages to remain in their homes,
supplement their income, pay for health care,
etc.
A reverse mortgage is a loan that enables
older homeowners to convert part of their
home’s equity into tax-free income without
having to sell their home or take on a new
monthly mortgage payment.
To qualify for a reverse mortgage, you must be at least 62 years old, you must occupy your home as your principal residence, and you must have equity in your home. (In the case of co-owners, both must be 62 if their names are on the title to the home. The younger person’s name could be removed from the title so that the other person can qualify for the reverse mortgage.)
If you take out a reverse mortgage, you retain title to your home during the reverse
mortgage period, just as with a regular home mortgage. You may sell it and move at any time,
keeping the sales proceeds that exceed the
mortgage balance. A borrower cannot be forced to
sell their home to pay off the mortgage, even if the
mortgage balance grows to exceed the value of the
property. A
Reverse Mortgage (FHA reverse mortgage loans are also called "Home Equity Conversion Mortgages"
or HECM) need not be repaid until the
borrower moves, sells, or dies. However, the borrower is
responsible for keeping up payments on their
homeowner’s insurance and property taxes, and to
maintain the condition of the home.
Reverse Mortgages have a number of special consumer safeguards.
- Limits on the interest rate and origination fees.
- A ceiling on the final repayment amount – it can never exceed the value of your home.
- Advance disclosure so that you are made fully aware of all costs.
- Mandatory counseling by independent specialists.
Learn More.
Charter has a select group of specially trained Reverse Mortgage Loan Officers who will be glad to help you consider all of the issues involved. They'll help you find an independent reverse mortgage counselor and complete your mortgage application, if you decide that a reverse mortgage is right for you.
Contact one of our expert Reverse Mortgage Specialists now.
