About Reverse Mortgages

A Reverse Mortgage is a type of mortgage where homeowners can borrow money against the value of their home. No repayment of the mortgage (principal or interest) is required of the borrower(s) until the borrowers are deceased or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan. However, if you live past your age expectancy or the value of your home declines, in most cases lenders must forgive payments made to you in excess of the home value. Often, the lender will require that there can be no other liens against the home. Any existing liens must be paid-off through the proceeds of the reverse mortgage. Reverse mortgage is a method of receiving income that people can tap into for their retirement. The advantage of a reverse mortgage is that the borrower's credit is not relevant, and is often unchecked, since the borrower does not need to make any payments. As the home serves as collateral, it must be sold in order to repay the mortgage when borrower passes away (in some cases, the heirs have the option of repaying the mortgage without selling the home). For more information about reverse mortgages please contact Adam Dubilo at 413-219-1104.

The material on this web site covers a variety of topics on residential and commercial real estate mortgage banking and is for informational purposes only. This information is inherently limited in scope, may change without notice, and does not contain all of the applicable terms, conditions, limitations and exclusions of the products and services described herein.

© 2007 ADYS Mortgage, Inc.  All Rights Reserved.