Reverse Mortgages

MetLife

Is this the right time for a Reverse Mortgage?

For many families, home equity is their single, biggest financial asset. For seniors age 62 and older, using home equity through a reverse mortgage can help them deal with financial challenges. In these current economic times, it is difficult to make ends meet, but with information and education, a reverse mortgage can help. The money from a reverse mortgage can be used to pay property taxes, home heating fuel, health care costs, pay off an existing mortgage, or to live more comfortably.

A government-insured reverse mortgage allows older homeowners to convert a portion of their home equity into cash, while they continue to live at home for as long as they want. This type of loan is called a "reverse" mortgage because instead of the borrower making payments to the lender, the lender makes a payment or payments to the borrower. Unlike conventional mortgages, there are no income or credit requirements for these loans. The homeowner keeps ownership of the house and doesn't have to repay the money as long as he or she lives there. When the homeowner passes away or moves out, the loan is typically paid off by selling the house, and any money left over goes to the homeowner or to their estate.

A reverse mortgage can be the right choice for senior homeowners who need additional income without having to sell their homes to raise cash. This cash can be taken three ways: 1) in a lump sum, 2) set up as a credit line to take as needed, or 3) as a life-time payment sent to you each month. You can also do a combination of any of these three.

A reverse mortgage is one financial option for seniors - It is good to consider all financial options when deciding whether or not it is the right time for a reverse mortgage.

For more details on this government-insured program for seniors, contact Steve Eastman, a Reverse Mortgage Consultant for MetLife, and a resident of Raymond, ME. Steve has educated homeowners throughout Maine about the reverse mortgage for ten years. If you would like to learn more about reverse mortgages, you can reach Steve at his office in Gray at 1-800-416-4748.

MetLife is one of the largest providers of reverse mortgages in the U.S.