What is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash.
The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction how reverse mortgage proceeds can be used.
The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.
The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as the borrower lives in the home he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowners insurance and homeowners association dues (if applicable).
If you have any other questions about reverse mortgages or are interested in discussing your options please use the contact info above to set up an appointment.
About Brad Harvey
Brad Harvey has over 42 years of experience in the real estate, insurance and financial industry, including the last 17 years working with reverse mortgages.
Brad is a Tyler native. He graduated from Tyler's Robert E. Lee High School in 1973 and the University of Texas at Austin with a BBA in Finance in 1977. Brad and wife Gay have been married for 41 years. They have 2 sons, Will and Cam.